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Arcelor Corp Issues $400,000,6%,10-Year Bonds

Question 109

Multiple Choice

Arcelor Corp issues $400,000,6%,10-year bonds.The market rate at the date of issue is 5.5%.The total amount of interest to be paid to the bondholders for the semiannual interest payments,assuming the effective interest method is used,is


A) $318,110
B) $334,298
C) $344,554
D) $391,470
E) $348,819

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