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12 February, 22:04

A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

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  1. 12 February, 22:10
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    The amount of each semiannual interest payment is $4500.

    Explanation:

    The amount of each semiannual interest payment

    = 100000*9%*6/12

    = $4500

    Therefore, the amount of each semiannual interest payment is $4500.
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Home » Business » A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
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