MC Qu. 129 A company issues...

A company issues 9%, 5-year bonds with a par value of $250,000 on January 1 at a price of $260,139, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

Multiple Choice:

$22,500.

$20,000.

$10,000.

$11,250.

$0.

MC Qu. 130 A company issues...

A company issues 6% bonds with a par value of $80,000 at par on January 1. The market rate on the date of issuance was 5%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

Multiple Choice:

$4,800.

$4,000.

$2,400.

$2,000.

$0.