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On July 1,2011,Ace Electronics Issued $10 Million Dollars of 8%,20-Year

Question 307

Multiple Choice

On July 1,2011,Ace Electronics issued $10 million dollars of 8%,20-year bonds at 102.The bonds pay interest semiannually on December 31 and June 30.How much cash will Ace pay on December 31,2011,the first interest payment date?


A) $800,000
B) $408,000
C) $400,000
D) $816,000

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