Question: T Corp issues 5%, 10-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is

T Corp issues 5%, 10-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 4.6%. Interest is paid semiannually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET. 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. $___________ (rounded to nearest dollar). What is the issue price of the bond?

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