A company issues 8%, 20-year bonds with a par value of $500,000. The current market rate...

Question

Question

A company issues 8%, 20-year bonds with a par value of $500,000. The current market rate for the bonds is 8%. The amount of i

Answer 1

Answer #1

Int = Bond Par Value * Coupon Rate * Time Interval of Coupon Payment

= $ 500,000 * 8% * 6 /12

= $ 20,000

OPtion C is correct.

Answer 2

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