Blu$-$Star Corporation issues a $$15,000,000,20-$year bond with a contract rate of $9\%.$ The market rate of interest for similar bonds is $10\%.$ Interest is payable semi$-$annually.

What is the amount of interest expense Blu$-$Star Corporation will recognize with each semi$-$annual interest payment to bondholders? Round to the nearest whole dollar.

a$)$$$491,300$

b$)$$$707,172$

c$)$$$822,200$

d$)$$$675,000$

Squabb Corporation issued a $$12,000,000,5-$year bond, with a contract rate of $8\%.$ The market rate of interest for similar bonds was $6\%.$ Interest is payable semi$-$annually.

What is the amount of cash Squabb Corporation receives from the bond issuance?

a$)$$$13,023,576$

b$)$$$12,000,000$

c$)$$$11,254,022$

d$)$$$9,047,890$

Squabb Corporation issued a $$12,000,000,5-$year bond, with a contract rate of $8\%.$ The market rate of interest for similar bonds was $6\%.$ Interest is payable semi$-$annually.

The journal entry to record the issuance of this bond will include...

a$)$a credit to Premium on Bonds Payable

b$)$a debit to Interest Expense

c$)$a debit to Bonds Payable

d$)$a credit to Cash