On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________.

1. $120,000
2. $60,000
3. $7,500
4. $15,000

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 ________.

1. $200,000
2. $558,438
3. $2,233,750
4. $6,701,250