On January 1, 2013, $1,000,000, 5-Year, 5% Bonds, Were Issued

Multiple Choice

On January 1, 2013, $1,000,000, 5-year, 5% bonds, were issued for $957,349. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1. How much interest is paid at each interest payment date?

A) $25,000
B) $50,000
C) $30,000
D) $60,000