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Calculate the interest payment on the bond

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Reference no: EM132950934

Problem 1: Big Cat's issues $100,000 of a 4-year 10% bond on January 1, 2015 when the market rate is 8%. Interest payments are made semi-annually. Calculate the interest payment on the bond.

a. $10000
b. $4000
c. $8000
d. $5000

Reference no: EM132950934

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