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At the beginning of 2022, ABC Corp. issued (sold) $150 million in 10-year callable bonds at a par value of $1,000 that pay a 4.0%
At the beginning of 2022, ABC Corp. issued (sold) $150 million in 10-year callable bonds at a par value of $1,000 that pay a 4.0% annual coupon rate that is paid semiannually. The bonds are callable after 2 years for a call premium equal to one annual coupon payment. During 2022, interest rates increased and ABCs bonds are now trading for $825.00 at the beginning of 2023. a. What is the amount of the semiannual interest payment you can expect to receive from investing in this bond?
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