On January 1, 2022, DM Inc. issues a bond with a $500,000 face value and a coupon rate of 8%. The bond matures in 5 years and pays interest quarterly (March 31, June 30, September 30, December 31). The market rate is 10% on the date of issuance. The companys fiscal year-end is 12/31.

What is the amount of the interest payment that DM Inc. will make each interest period? a. $40,000 b. $50,000 c. $25,000 d. $10,000

What present value factor should DM Inc. use to calculate the present value of the interest payments DM will pay over the bonds life? a. 15.58916 b. 4.64583 c. 4.71346 d. 16.35143