On April 1, Ballentine Corporation issued 10%, 10-year, $800,000 bonds at face value. Interest dates are April 1 and October 1. The amount of cash paid out for interest during the current calendar year is:

A) $0.
B) $20,000.
C) $40,000.
D) $80,000.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its worth at issuance.

Interest Dates

Specific dates on which interest payments are made by the issuer of a debt instrument to the holders.

Cash Paid

The total amount of money disbursed by a company to settle debts, purchase goods, or cover expenses, usually within a specific period.