A company issues 8% bonds with a par value of $210,000 at par on January 1. The market rate on the date of issuance was 7%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:
A. $8400.
B. $16,800.
C. $7350.
D. $14,700.
E. $0.
Answer: A
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