Arcelor Corp issues $400,000,6%,10-year bonds.The market rate at the date of issue is 5.5%.The total amount of interest to be paid to the bondholders for the semiannual interest payments,assuming the effective interest method is used,is

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The total interest paid to bondholders is calculated by multiplying the bond's face value ($400,000) by the coupon rate (6%) and the number of years (10), resulting in $240,000. However, since the bonds are issued at a premium (market rate is 5.5% while coupon rate is 6%), the effective interest method will result in a total interest payment of $391,470 over the life of the bond.

Arcelor Corp Issues $400,000,6%,10-Year Bonds