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New University plans to issue a bond with a face value of $2,000,000 to purchase athletic equipment. The bond matures in ten years and requires
New University plans to issue a bond with a face value of $2,000,000 to purchase athletic equipment. The bond matures in ten years and requires semi-annual interest payments at a stated annual interest rate of 4 percent. When the University issues the bond, market interest rates have risen to 5 percent. What will be the amount of each semi-annual interest payment on the bond?
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