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What is the amount of a single interest payment

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Question - X Inc. is planning to issue a $1,000 face value bond with an annual can pan rate at 7.5% that matures in 5 years. X Inc. is planning to pay quarterly interest payments. Similar X Inc. bands are quoting at 95% at par.

What is the amount of a single interest payment that X Inc. will make?

$75.00

$95.00

$27.75

$18.75

Reference no: EM131898554

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