Calculate the amount of interest that the company will pay

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Question - As a form of long-term financing, a company issued bonds totaling $500,000 at par. The obligations have a term of three years and pay an annual interest rate of 16% every six months. The bonds were placed in full at $575,000.

Determine if the obligations were placed at a discount or with a premium and calculate the amount of the amortization corresponding to each semester.

Calculate the amount of interest that the company will pay every six months to the bondholders.

Reference no: EM132840832

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