10 0 Morgan Company issues 8%, 20 year bonds with a par value of $800,000 that...

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Answer 1

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Answer #1

The Correct option is $32,000

The Bond has a coupon rate of 8%, i.e 8% per year. For 6 months the effective rate would be 4%[8 X 6/12]

Therefore each semi annual interest payment would work out to $32000 [$800,000 X 4%].

Answer 2

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