Question

a company has an investment in 9% bonds with a par value of $100,000 that pay interest on October 1 and April 1. The amount of interest accrued on December 31 (company's year end) would be:

A) $750
B) 1500
C) 2250
D) 4500
E) 9000

Answer 1

Answer:

$1500.

Explanation:

It is clearly stated that company pays on October 1 and April 1, so interest for the month of October and april would be:

   Bond= $100000

    rate = 9%

Interest = 900000 * 9% = 9000 yearly

Monthly interest = 9000/12= $750 monthly  

for 2 month= 2 * 750 = $1500 interest.