Pinto Corp

Multiple Choice

Pinto Corp. sells $300,000 of bonds to private investors. The bonds have a 4% coupon rate and interest is paid semiannually. The bonds were sold to yield 5%.
What periodic interest payment does Pinto make to its investors?

A) $6,000
B) $5,000
C) $2,500
D) $3,000
E) None of the above