A company issues 8%, 8-year bonds with a par value of $130,000 on January 1 at a price of $137,861, when the market rate of interest was 7%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
A. $4550.
B. $5200.
C. $10,400.
D. $9100.
E. $0.
Answer: B
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