Question: O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is

O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually. 1. $___________How much will be paid in interest each interest payment? 2. $___________ (rounded to nearest dollar). What is the present value of the interest payments? 3. $___________ What is the issue price of the bond?

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