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How much interest does forward company pay to bondholders

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Question - On January 1, Forward Company issues bonds that have a $25,000 par value, mature in 5 years, and pay 10% interest per year. Interest payments are paid to bondholders semiannually on June 30 and December 31. How much interest does Forward Company pay to bondholders every six months if the bonds are sold at par?

A. $1,250.00

B. $2,500.00

C. $5,000.00

D. $12,500.00

Reference no: EM133064875

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