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How much interest does this bond pay annually

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Question - Moore Inc. manufactures cycling equipment. Recently, the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $5,000,000 of 9% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 11%.

How much interest does this bond pay annually? Semiannually? What is the present value of the interest payments over the life of the bond?

Reference no: EM132509702

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