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A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9000 when the interest
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A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9000 when the interest rate in the market place is 8% per year compounded semiannually, the size and frequency of the interest payments the person will receive are:

User Paglian
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Answer:

$400 every 6 months.

Step-by-step explanation:

Step wise solution is given.

A corporate bond has a face value of $10,000, a bond interest rate of 8% per year-example-1
A corporate bond has a face value of $10,000, a bond interest rate of 8% per year-example-2
A corporate bond has a face value of $10,000, a bond interest rate of 8% per year-example-3
User Jose Parra
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