A company issues 9%, 20- year bonds near a par effectiveness of $750,000. The current flea market rate is 9%. The amount?

of interest owed to the bondholders for each semiannual interest pay-out is?

A __ is an alternative method to dosh dividends which is used to recompense out a firms proceeds to shareholders.?



Answers:   Interest payable to bondholders is always the facade value x the stated or coupon rate divided by 2 if payments are semiannual. So
Interest payable = $750,000 x 0.09 x 0.5 = $33,750.

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