Business, 20.07.2020 01:01 Fm610899

Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk and other characteristics. Required:

a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i. e. 1,234,567.)

Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk and other characteristics.

Required:

a. How much interest will be paid annually on these bonds? (Enter your answer in dollars, not millions of dollars, i. e. 1,234,567.)

Annual Interest payment+

b. Were the bonds issued at a premium or discount?

-- Premium
-- Discount
c. Will the annual interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year?

-- Interest expense will be less than the interest paid.
-- Interest expense will be more than the interest paid.
-- Interest expense will be equal to the interest paid.

Answers: 3

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Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46...

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