Toopy Corp issues $650,000, 9%, 10-year bonds. The bonds trade at 105.5. 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 amount of interest to be paid over the life of the bonds is calculated based on the face value and the stated interest rate. The face value is $650,000, and the annual interest rate is 9%, so the annual interest is $58,500. Over 10 years, the total interest paid is $58,500 * 10 = $585,000. The effective interest method affects the allocation of interest expense and amortization of premium or discount, but not the total cash interest paid.

Toopy Corp Issues $650,000, 9%, 10-Year Bonds