17:55 Search Chapter 9 Updated chapter 9 packet Use the following to answer questions 1-3 (Round answers to the nearest dollar) A Corp issues 6%, 10-year bonds with a face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET How much will be paid in interest each interest payment? (rounded). What is the present value of the interest payments? (rounded). What is the issue price of the bond? Use the following to answer questions 4-7 (Round answers to the nearest dollar) B Corp issues 12%, 5-year bonds with a face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 10%. Interest is paid semiannually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. S (rounded). What is the issue price of the bond? (Hint, do the three step process or use your financial calculator to determine the issue price). 5. S (rounded). When the company records the first interest payment, how much will the company record for interest expense? Previous Next To Do Inbox