Hopkins Ltd. issued five-year bonds with a face value of $220,000 on January 1. The bonds have a coupon interest rate of 6% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 7% when the bonds were issued at a price of 97. a. Using above information, determine the proceeds received by the company when the bonds were issued. b. Determine the interest expense recorded for the six months ending June 30 when the first interest payment is made.

Determine the interest expense recorded for the six months ending June 30 when the first interest payment is made.