On January 1, Sustainable Energy Corporation issues bonds that have a $100,000 par value, mature in 8 years, and pay 12% interest per year. Interest payments are paid to bondholders semiannually on June 30 and December 31. How much interest does Sustainable Energy Corporation pay to bondholders every six months if the bonds are sold at par? a. $1,200
b. $3,000
c. $6,000
d. $12,000
e. $100,000

c. $6,000

Explanation:

The semiannual interest payable to bondholders every six months is computed using the semiannual coupon payment formula below:

semiannual coupon payment=face value*coupon rate*6/12

face value of the bonds=$100,000

coupon rate=12%

6/12 symbolizes a six-month payment

semiannual coupon payment=$100,000*12%*6/12

semiannual coupon payment=$100,000*6%

semiannual coupon payment=$6,000

The $6,000 would be every 30 June and 31 December for 8 years during the bonds' life

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know