Question: A company issues 6 % bonds with a par value of $ 1 3 0 , 0 0 0 at par on January 1 .

A company issues 6% bonds with a par value of $130,000 at par on January 1. The market rate on the date of issuance was 5%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bondholder(s) is:
Multiple Choice
$7,800.
$6,500.
$3,900.
$3,250.
$0.

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