Fish & Chips Inc.has two bond issues outstanding, and both sell for R701.22.The first issue has a coupon rate of 8 percent and 20 years to maturity.The second has an identical yield to maturity as the first bond, but only 5 years until maturity.Both issues pay interest annually.What is the annual interest payment on the second issue?
A) R120.00
B) R37.12
C) R56.42
D) R29.68
E) R11.16
Correct Answer:
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