Auerbach Inc

Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 6%.
-How much cash interest does Auerbach pay on March 31, 2019?

A) $6.0 million.
B) $12.0 million.
C) $9.0 million.
D) $18.0 million.

Correct Answer:

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