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What amount of premium will be amortized

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Question - Texxon Corporation issued $200,000 of 10-year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually.

These bonds would be issued at a premium (i.e., your answer to #2 should be more than $200,000). What amount of premium will be amortized on the first semi-annual interest payment date?

?a. $2,000.00

?b. $2,654.12

?c. $1,462.88

?d. $1,345.88

Reference no: EM132736576

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