Respuesta :
Answer:
company pay to the bondholders of $ 25,900
Explanation:
Face value of the bond = $ 518,000
Interest Rate per annum = 10 percent
Interest Rate for Semi annum = 5 percent [ 10%/2]
Cash interest paid = Face value * Coupon Rate
= $518,000 * 5%
= $ 25,900
Cash interest Paid on September 30,2019,is : $ 25,900
Answer:
$25,900
Explanation:
As for the provided details, we have
Face value of the bonds issued by Lakeside Company = $518,000
Coupon rate = 10% [tex]\times[/tex] 6/12 = 5%
Term = 10 years paid half yearly = 10 [tex]\times[/tex] 2 = 20 periods
Dates on which coupons will be paid = March 31 and September 30
Coupon on September 30 = $518,000 [tex]\times[/tex] 5% = $25,900
This the amount of cash paid on 30 September 2019 to bond holders = $25,900
