A bond with a face value of $100,000 was issued for $93,500 on January 1, 2011. The
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A bond with a face value of $100,000 was issued for $93,500 on January 1, 2011. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. Interest is paid annually. How much interest will be paid on December 31, 2011?
a. $10,000
b. $8,000
c. $7,480
d. $9,350
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