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On July 1, a company sells 8-year $\$250,000$ bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.A. $\$ 120,000$B. $\$ 60,000$C. $\$ 7,500$D. $\$ 15,000$

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Chapter 13

Long-Term Liabilities

Section 1

Explain the Pricing of Long-Term Liabilities

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So this question says that on July 1st accompany sells 80 a eight year, um, bond for $150,000 to $50,000 on then he has a stated interests off 6%. The question. The answer is, if the interest payments are paid annually, so the interest payment off 6% spade annually, um, each interest payment to be words. So since we know we have 6% interest paid alimony, the value of the bond is 2 50,000. So to find the how much interest payment to pay on each time, so each interest would be causes 6% obviously off to $50,000. I'm just gonna be six over 100 times 2 50 and this will take it with this. So I left with 2500 times six on that, going to be $15,000 so each interest payments to page time is $15,000

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