Bond Premium with Interest Paid Semiannually Apple Corporation issues $200,000 of 3-year bonds with a stated interest rate of 12 percent. Interest is paid every 6 months. The current market rate for similarly rated bonds at the time of issue is 10 percent and Apple receives $210,152 for the bonds. Assuming the bonds are issued on January 1 and the effective-interest method of amortization is used in computing interest expense:

a. What amount of interest expense will Apple report for the first 6 months?

b. What amount of interest expense will Apple report for the second 6 month interest-payment period?

c. Prepare a bond interest and amortization table for the life of the bonds, as illustrated in Exhibit 11-6.