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Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The amount paid to the bondholders

Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is.
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Rose Schowalter

Feb 20, 2025

$33,750Explanation:Given thatBond per share = $750,000 Issued Amount = 9%The computation of amount which is to be paid to the bondholders for every semi-annual interest payment is given below :-Interest payment = bond per share × issued amount × (number of months ÷ total number of months in a year)= $750,000 × 9% × 6 months ÷ 12 months= $33,750... Show More
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Rose Schowalter

Feb 20, 2025

Calculation of the amount paid to the bondholders for each semiannual interest payment:Formula used:Semiannual interest payment = Bond's Face value * Bond's Interest rate / 2We know the following information:Bond's Face value = $750,000Bond's Interest rate = 9%Hence, Semiannual interest payment = 750000*9%/2 = $33,750... Show More
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Rose Schowalter

Feb 20, 2025

$33750Explanation:First and foremost, we have to calculate the interest paid for the year which will be:= $750000 X 9% = $750000 × 0.09= $ 67500Therefore, the semi annual payment will them be calculated as:= $67500 / 2 = $33750... Show More
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