On January 2, 2016, Hi-Tech Master Construction, Inc issued $500,000, 10-year bonds for $574,540 . The bonds pay interest on June 30 and December 31 . The face rate is 8% and the market rate is 6%. The annual cash payment (paid in semiannual payments) on the bonds is
a. $40,000.
b. $30,000.
c. $20,000.
d. $15,000.
a
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