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A company issued term bonds with a par value of $ 200,000, a life of 10 years and a nominal rate of 6.50% per annum.

A company issued term bonds with a par value of $ 200,000, a life of 10 years and a nominal rate of 6.50% per annum. The bonds pay interest every six months. Part A. 1. If the market rate (yield) on the bond issue date was 8.30% per year, at what price were the bonds issued? 2. How much is the interest expense for the second period (semester) of these bonds?

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