1.

General Motors issued $10,000,000, 6%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semi-annually on June 30 and December 31. The bonds are issued to yield 4%. What is the cash payment on these bonds each period related to interest?

$600,000

$400,000

$200,000

$300,000

2.

General Motors issued $10,000,000, 6%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semi-annually on June 30 and December 31. The bonds are issued to yield 4%. What is the issue price of the bonds?

		$13,592,560
		$10,890,080
		$10,897,780
		$11,760,040