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A company issues $ 1 0 0 , 0 0 0 of 6 % , 5 - year bonds dated January 1 that pay interest

A company issues $100,000 of 6%,5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the market rate is 8%. The present value tables indicate the present value factor of an annuity for 3% at 10 periods is 8.5302; and for 4% at 10 periods is 8.1109. To find the present value of the interest payments, multiply _______ by the present value factor _________.

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