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A company issues bonds with a par value of $15,000,000 on January 1, 2015. The bonds have an annual coupon rate of 7%, pay interest

A company issues bonds with a par value of $15,000,000 on January 1, 2015. The bonds have an annual coupon rate of 7%, pay interest semi-annually, and will mature in 8 years, and the market rate of interest on the bonds is 6% per year. What is the annual interest expense the company will report if it uses the straight-line method to amortize the bond premium?

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