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Firm issued $2m, 10 year bonds with coupon rate of 4%. Semiannual coupon payments. Bonds were sold for $2.25M, Total interest expense incurred during the

Firm issued $2m, 10 year bonds with coupon rate of 4%. Semiannual coupon payments. Bonds were sold for $2.25M, Total interest expense incurred during the life of the bond is:

a.$550K

b.$680K

c.$1.05M

d. Cannot be determined from the information given

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