ABC Corporation issues a bond which has a coupon rate of 10.20%, a yield to maturity of 9.75%, a face value of $1,000, and a market price of $1,150. What is the annual interest payment? Round to two decimal places.

To answer the question, respond in the following way:

(1) Describe and interpret the assumptions related to the problem.

(2) Apply the appropriate mathematical model to solve the problem.

(3) Calculate the correct solution to the problem.