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A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at a price of $137,861, when the market rate of

A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at a price of $137,861, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

a) 10,400

b) 0

c) 9,100

d) 4550

e) 5200

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