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Question
Dot Company issued $200,000 of bonds on January 1, 2011 with interest payable each year. The bonds had a stated rate of 8%. The bonds were set up as floating-rate debt with the rated pegged to LIBOR plus 3%. Interestexpense for year one if LIBOR is 7% will be which one of the following?
A. $6,000
B. $14,000
C. $16,000
D. $20,000
Answer
This answer is hidden. It contains 26 characters.
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