On January 1, 2015, Corner Store, Inc.issued $400,000, 10-year, 10% bonds for $354,200.The bonds pay interest on June 30 and December 31.The market rate is 12%.The cash payment on June 30, 2015 is

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The cash payment on June 30, 2015, is the interest payment based on the bond's face value and stated interest rate. The bonds have a face value of $400,000 and a stated interest rate of 10%, so the semi-annual interest payment is $400,000 * 10% / 2 = $20,000.