Question: A company issues 6%, 7-year bonds with a par value of $240,000 on January 1 at a price of $254,029, when the market rate of

A company issues 6%, 7-year bonds with a par value of $240,000 on January 1 at a price of $254,029, when the market rate of interest was 5%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

Multiple Choice

$14,400.
$12,000.
$6,000.
$7,200.
$0.

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