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$100,000 of five-year bonds are sold for $98,500 on the issue date. Interest of $4,000 is paid each year until the bonds are repaid. What

$100,000 of five-year bonds are sold for $98,500 on the issue date. Interest of $4,000 is paid each year until the bonds are repaid. What is the total interest expense to the company for issuing these bonds?

The answer is $18,500. I want to know how to calculate.

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