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Alex777 [14]
3 years ago
12

Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The current market rate is

8%. The amount paid to the bondholders for each semiannual interest payment is:__________.
Business
1 answer:
Leno4ka [110]3 years ago
7 0

Answer:

$33,750

Explanation:

Given that

Bond per share = $750,000

Issued Amount = 9%

The computation of amount which is to be paid to the bondholders for every semi-annual interest payment is given below :-

Interest payment = bond per share × issued amount × (number of months ÷ total number of months in a year)

= $750,000 × 9% × 6 months ÷ 12 months

= $33,750

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Answer:

internal rate of return is 20.463%

Explanation:

given data

Year   Cash Flow

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