Question: Procter & Gamble Co. issues 40-year bonds with a face value of $20,000,000 and a stated interest rate of 3%. The bonds pay interest semi-annually.

·Procter & Gamble Co. issues 40-year bonds with a face value of $20,000,000 and a stated interest rate of 3%. The bonds pay interest semi-annually. Calculate the semi-annual interest payment and the total interest expense over the life of the bonds.

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