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calculate bond interest. ABC Corporation issued $75,000, 6%, 5year bonds. interest is payable semiannually.   the market...

calculate bond interest.
ABC Corporation issued $75,000, 6%, 5year bonds. interest is payable semiannually.   the market rate of interest is 8%.

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Answer #1

Bond Interest paid (paid in cash ) = Face value * coupon rate *n/12

                             = 75000 * .06 *6/12

                             = $ 2250

**There are 2 semiannual periods in a year comprising of 6 months each .

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