Answer:
$470,475
Explanation:
We first calculate interest for 6 months
= 0.09 x 6/12
= 4.5%
Yield for 6 months
= 10% *6/12
= 5%
Interest at 4.5%
= 500000 x 4.5%
= 22500
Interest at 5%
= 469500 x 5%
= 23475
Amortization
= Interest expense - interest payment
= 23475 - 22500
= 975
Issue price of bond + amortization
= 469500 + 975
= $470,475