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Watson Electric Corp. sells $200,000 of bonds to private investors. The bonds have an 9% coupon rate and interest is paid semiannually. The bonds were
Watson Electric Corp. sells $200,000 of bonds to private investors. The bonds have an 9% coupon rate and interest is paid semiannually. The bonds were sold to yield 10%. What periodic interest payment does Watson make?
A) $18,000
B) $20,000
C) $9,000
D) $10,000
E) None of the above
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