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A city sells $5 million of 20-year general obligation bonds on October 1, 2013. Interest on the debt is payable at the rate of 5%

A city sells $5 million of 20-year general obligation bonds on October 1, 2013. Interest on the debt is payable at the rate of 5% a year on the unpaid balance of the debt, every six months commencing March 31, 2014. How much should the city report as interest expenditure in the Debt Service Fund for the calendar year ending December 31, 2013? Explane..

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