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

Question 75

Multiple Choice

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


A) $58,500.
B) $63,750.
C) $68,575.
D) $585,000.
E) $516,425.

Correct Answer:

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