Lintron Inc issued corporate bonds to finance the purchase of a new plasma die cutting machine. The bonds are currently selling for $987.50 and have 8 years remaining until maturity. The market interest rate is 6.7% annually. Calculate the semi-annual coupon payment, the annual coupon rate, and the effective annual rate.

Answer: Coupon payment is $32.48, coupon rate 6.50%, EAR 6.60%

Please show how the answer was calculated