On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest payment of $1,875 is paid on July 1. What is the stated annual interest rate on the bond?

1. 5.00%
2. 2.50%
3. 1.25%
4. 10.00%

   On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________.

5. $200,000
6. $558,438
7. $2,233,750
8. $6,701,250