Werther Incorporated. issued ten-year, 8%, $100,000 bonds paying interest on an annual basis, at a...
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Accounting
Werther Incorporated. issued ten-year, 8%, $100,000 bonds paying interest on an annual basis, at a $5,200 premium. Which of the following statements is TRUE?
Select one:
a. Weather's annual interest expense on the bonds will be less than the amount of interest payments to bondholders each year.
b. The cash paid to bondholders will be $520 each interest period.
c. Weather will receive $94,800 as the issue price of the bonds.
d. Weather's annual interest expense on the bonds will be greater than the amount of interest payment to bondholders each year.
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