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What amount of cash should be paid to the holders

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Question - Shaw Company issued 6%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 8%, and the issuer received $95,016 cash for the bonds. On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? Hint: The amount of cash interest to be paid is a number between $2,800 and $3,300.

Reference no: EM131725094

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