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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:

Respuesta :

Calculation of the amount paid to the bondholders for each semiannual interest payment:

Formula used:

Semiannual interest payment = Bond's Face value * Bond's Interest rate / 2

We know the following information:

Bond's Face value = $750,000

Bond's Interest rate = 9%

Hence, Semiannual interest payment = 750000*9%/2 = $33,750

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