Fish & chips has two bond issues outstanding, and both sell for $701.22 The first issue has a coupon rate of 8% and 20 years to maturity. The second has an identical yield to maturity as the first bond, but only 5 years until maturity. Both issues pay interest annually. What is the annual interest payment on the second issue?

Answers :

a. 37.12 B. 29.68 C. $120.00 D. 56.42