Accounting Midterm Exam ACG-2011: Question 86

A company issues at par 9% bonds with a par value of $100,000 on April 1. The bonds pay interest semi-annually on January 1 and July 1. The cash received on July 1 by the bond holder(s) is:

	$6,000.
	$1,500.
	$7,500.
	$3,000.
→	$4,500.

$100,000 x .09 x 1/2 year = $4,500