Use the following information to answer the remaining questions. Scuppers Boat Works, Inc. issued 200 bonds to finance expansion into a new line of designs. The bonds had a total principal of $200,000. The bonds will pay interest semiannually on June 30 and December 31 at a rate of 9% per annum and mature in five years. On January 1, 200A, the day the bonds were issued, similar securities were yielding a rate of 10% per annum. Scuppers' underwriter, Reedham and Quip, purchased the entire issue to resell them to individual investors. Scuppers retained the right to buy back the bonds from the bondholders in two years at a price of $102.
a. 9%; $18,000; year
b. 9%; $18,000; six months
c. 9%; $9,000; six months
d. 10%; $10,000; six months
e. 10%; $20,000; year
Answer: c. 9%; $9,000; six months
The stated rate of interest on the bonds is _____; bondholders will be paid $_____ every _____.
a. 9%; $18,000; year
b. 9%; $18,000; six months
c. 9%; $9,000; six months
d. 10%; $10,000; six months
e. 10%; $20,000; year
Answer: c. 9%; $9,000; six months
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.