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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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