On July 1, 2011, Ace Electronics issued $10 million dollars of 8%, 20-year bonds at 102. The bonds pay interest SEMIANNUALLY on December 31 and June 30. How much cash will Ace pay on December 31, 2011, the first interest payment date?

A) $800,000
B) $408,000
C) $400,000
D) $816,000

C

Business

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