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Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is.
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Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is.

User Pedro Bernardes
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1 Answer

4 votes

Answer: $38,000

Step-by-step explanation:

The company is supposed to pay bondholders an Interest of 10% per year according to the terms of the terms of the bond.

= 10% * 760,000

= $76,000

However, payments are to be made semi-annually which will be;

= 76,000 * 1/2

= $38,000

User Geroge
by
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