Question

simmons company issued four-year bonds with a par value of $1,000,000. the bonds have a 4% coupon rate and interest is payable semi-annually. the market rate of interest is 6%. what is the amount of the semi-annual interest payment that simmons must make to investors?

Answer 1

Simmons Company issued four-year bonds with a $1,000,000 par value. Interest is due semi-annually on the bonds, which have a 4% coupon rate. The market interest rate is 6%. $1002402.88 must Simmons pay investors in interest on a semi-annual basis.

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Understanding how loans and investments operate is essential to laying a solid financial foundation for both you and your company. How interest is calculated is one of the key aspects of loans and investments. Your loans and investments may have simple interest or compound interest terms. You will discover what it implies, why it matters, and how to compute interest that is compounded semiannually interest in this post.

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