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What is the interest that would not have been paid

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Reference no: EM133105623

Question - Broadway Inc. has $200,000 of 8 percent convertible bonds payable that were issued in 2010 and mature in 2017. Each bond has a face value of $1,000. The appropriate tax rate is 20 percent. The discount amortization is $700 per year. Each bond is convertible into 30 shares of common stock. What is the interest that would not have been paid if the bonds had been converted to common stock at the beginning of the earliest period?

A. $13,360

B. $6,000

C. $16,700

D. $7,360

Reference no: EM133105623

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