Morgan Company Issues 9%,20-Year Bonds with a Par Value of $750,000

question 74

Multiple Choice

Morgan Company issues 9%,20-year bonds with a par value of $750,000 that pay interest semiannually.The current market rate is 8%.The amount paid to the bondholders for each semiannual interest payment is:

• A)$60,000.
• B)$33,750.
• C)$67,500.
• D)$30,000.
• E)$375,000.

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