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Sagot :
The amount of semiannual interest payment is $10,150. Hence, Option D is correct.
In the fields of finance and economics, interest is the payment made at a set rate by a borrower or deposit-taking financial institution to a lender or depositor in excess of the principal amount.
It differs from a fee the borrower might pay the lender or another entity. Interest is the fee paid when borrowing money or when lending money. Most frequently, interest is shown as an annual percentage of the loan amount.
Though there are many more options, interest payments are typically based on the remaining balance of a loan and made monthly.
Amount of semiannual interest payment = Par value × rate of interest × given months ÷ total months
= 290,000 × 7 × 6 / 12
= 10,150
Therefore, Option D is correct.
Learn more about interest from here:
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The complete question has been attached in text form:
A company issues 7%, 6-year bonds with a par value of $290,000 on January 1 at a price of $304,433, when the market rate of interest was 6%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice
O $20,300
O $17400
O $8,700
O $10,150
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