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Sav [38]
3 years ago
9

A company issues 9%, 5-year bonds with a par value of $140,000 on January 1 at a price of $145,678, when the market rate of inte

rest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
Business
1 answer:
gavmur [86]3 years ago
4 0

Answer:

The amount of each semiannual interest payment is: $6,300

Explanation:

The semiannual interest payment of the bond is also known as the <em>coupon payment</em> of the bond and is calculated as follows :

Semiannual interest payment = ($140,000 × 9%) ÷ 2

                                                 = $6,300

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Answer:

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Explanation:

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  • Hence the E.O.Q is given as Q = √2 Dk / h

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