o a e neiconnectmheducationcommowconnect hm receved S268603

o a e neiconnectmheducation.com/mow/connect hm receved S268.603 n cash proceeds of the ollowing stetoments true Prev 310, 36.11 Next > here to seanch

Solution

Par Value of the Bonds = $                    2,50,000.0 Interest @ 7% = $                       17,500.0 Interest is paid semi - annual = $ 17,500 /2 = $                          8,750.0 So at the maturity the Bonds par value will be returned to the investors = $ 250,000 Interest is paid semi Annually so in 10 years there is 20 equal paymentsof $ 8,750 Soo in maturity there is payment of $ 250,000 and 20 interest payment of $ 8,750 Answer = Option 5 = Must pay $ 250,000 at maturity plus interest payment of $ 8,750