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 interest owed to the bondholders for each semiannual interest payment is:

a. $40,000.

b. $0.

c. $20,000.

d. $800,000.

e. $400,000.

AppendixLO1