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A Company Issues 9%,5-Year Bonds with a Par Value of $100,000

Question 227

Multiple Choice

A company issues 9%,5-year bonds with a par value of $100,000 on January 1 at a price of $104,055,when the market rate of interest was 8%.The bonds pay interest semiannually.The amount of each semiannual interest payment is:


A) $9,000.
B) $8,000.
C) $4,000.
D) $4,500.
E) $0.

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