Eaton company issued $5 million of bonds with a 10% coupon rate of interest. when eaton issued the bonds, the market rate of interest was 11%. which of the following statements is correct?
a. the bonds were issued at a premium.
b. annual interest expense will exceed the company's actual cash payments for interest.
c. annual interest expense will be $500,000.
d. the book value of the bond will decrease as the bond matures.
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Eaton company issued $5 million of bonds with a 10% coupon rate of interest. when eaton issued the b...
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