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On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest on a semiannual basis on June 30 and December 31 each year. The market interest rates were slightly higher than 5% when the bonds were sold.
Question problem 1: How much interest will be paid semiannually (each year on June 30 and on December 31) on these bonds?
Multiple Choice
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