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A corporation issued bonds on January 1, 2018 with the following terms: Face Value: $500,000 Coupon Rate of Interest 8%, Term: 10 years Interest: Semi-annual

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A corporation issued bonds on January 1, 2018 with the following terms: Face Value: $500,000 Coupon Rate of Interest 8%, Term: 10 years Interest: Semi-annual payments on June 30 and December 31 Market Rate of Interest 10% What is the total cost of borrowing on this bond? A. $437,740 B. $400,000 C. $462,260 D. $584,100 E. $655,220

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