"The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2013. The bond pays interest on March 31 and September 30. The market rate of interest on the issuance date was 4%. On September 30, 2013, how much cash did the company pay out to bondholders?"



I'm truly stumped, I honestly don't need the answer. Rather the formula I am to solve this with.

"The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2013. The bond pays interest on March 31 and September 30. The market rate of interest on the issuance date was 4%. On September 30, 2013, how much cash did the company pay out to bondholders?"

First determine the important facts

Principal value $500,000

Applicable rate 6%

Payment date 30 September(six months after issue)

Everything else might be applicable to cash received at time of issue but not to interest payment