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On the first day of its fiscal year, Chin Company issued $10,000,000 of 5-year, 7% bonds to finance its operations of producing and selling home
On the first day of its fiscal year, Chin Company issued $10,000,000 of 5-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Chin receiving cash of $9,208,752. What is the First semiannual interest payment and the bond discount combined with the semiannual interest payment?
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