Assume the bond was originally issued for $10,000 and held to maturity. a. The corporation paid…

Assume the bond was originally issued for $10,000 and held to maturity.

a. The corporation paid out $_______________ in total interest payments + paid out $_______________ of principal at maturity = total amounts paid of $____________

b. At issuance the corporation received from the investor (____________)

c. The difference is the cost of borrowing over the ten years = $____________

d. T his bond was issued at (a premium / par / a discount) because the market rate of interest was (less than 10% / 10% / more than 10%).

Assume the bond was originally issued for $8,000 and held to maturity.

a. The corporation paid out $_______________ in total interest payments + paid out $_______________ of principal at maturity = total amounts paid of $____________

b. At issuance the corporation received from the investor (____________)

c. The difference is the cost of borrowing over the ten years = $____________

d. This bond was issued at (a premium / par / a discount) because the market rate of interest was (less than 10% / 10% / more than 10%).