Question: Ava, Inc., issued 8% bonds, dated January 1, with a face amount of $373,900 on January 1, 2016 for an issue price of 106.5. The

Ava, Inc., issued 8% bonds, dated January 1, with a face amount of $373,900 on January 1, 2016 for an issue price of 106.5. The bonds mature on December 31, 2025 (10 years). For bonds of similar risk and maturity the market yield is 10%. Interest is paid annually on December 31.

What is the interest payment on the bond?

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