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

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 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.

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Muhammad Salman Alvi

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