A company issues 10% bonds with a par value of $180,000 at par on January 1. The market rate on the date of issuance was 9%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:
A. $0.
B. $8100.
C. $18,000.
D. $9000.
E. $16,200.
Answer: D
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