Practice Question: 8. A company issues 9%, 5-year bonds with a par value of $140,000 on January 1 at a price of $145,678, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

a. 5600 b. 12600 c. 11200 d. 6300 e. 0

Practice Question: 22 Morgan Company issues 8%, 20-year bonds with a par value of $740,000 that pay interest semiannually. The current market rate is 7%. The amount paid to the bondholders for each semiannual interest payment is:

a. 259000 b. 51800 c. 59200 d.370000 e.29600