What is the total cost of the bond issue?

timer Asked: Nov 19th, 2015
account_balance_wallet $5

Question Description

Jones Corporation issues $400,000, 10%, 5 year bonds at 102. The total cost of the bond issue (the total interest expense) over the life of the bonds is: Question 5 options: a) $ 40,000 b) $192,000 c) $200,000 d) $208,000

Tutor Answer

School: UC Berkeley

Thank you for the opportunity to help you with your question!

The answer for your question is b) $192,000

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Anusha Reddy

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