Multiple Choice
A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
A) $4,000.
B) $4,500.
C) $9,000.
D) $8,000.
E) $0.
Correct Answer:
Verified
Correct Answer:
Verified
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