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The company issues 6.25%, ten-year bonds with a total face amount of $1,000,000 . The market interest rate for bonds of similar risk and maturity

The company issues 6.25%, ten-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 6.2%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET.

1. $_____How much will be paid in interest each interest payment?

2. $_ (rounded to nearest dollar). What is the present value of the interest payments?

3. $_______ (rounded to nearest dollar). What is the issue price of the bond?

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