Problem:
On January 1, Bank, Rupp, & Baroque, Inc issued $50,000 worth of 10-year, 9% bonds for $49890.
Required:
Question: What is the amount for the first year interest payment?
A. $4,500
B. 4,400
C. 1,100
D. 88.80
Note: Be sure to show how you arrived at your answer.