On January 1,2012,Breaker,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 30,2012 is

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The cash payment on June 30, 2012, is calculated based on the bond's face value and the stated interest rate. The face value is $400,000 and the stated interest rate is 10%, so the semi-annual interest payment is $400,000 * 10% / 2 = $20,000.