Answer:
The cash paid to the bondholder on July 1 is Z = $7000
Explanation:
From the question we are told that
The percentage bond issued by the company is
%
The par value of the bond is
$200,000
The market rate is
%
So we are told that the bonds pay interest semiannually on January 1 and July
So the cash paid to the bondholder on July 1 is mathematically evaluated as
Z =
substituting value
Z =
Z = $7000