Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. 2. Determine the total bond interest expense to be recognized over the bonds' life. Answer is complete and correct. Total bond interest expense over life of bonds: Amount repaid 8 payments of $ 8,125 Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ $ 65,000 325,000 390,000 292,181 97,819 4

Legacy issues $325,000 of 5%, four-year bonds dated January 1,2021, that pay interest semiannually on June 30 and December 31 . They are issued at $292,181 when the market rate is 8%. 2. Determine the total bond interest expense to be recognized over the bonds' life Legacy issues $325,000 of 5%, four-year bonds dated January 1,2021 , that pay interest semiannually on June 30 and December 31 . They are issued at $292,181 when the market rate is 8% 2. Determine the total bond interest expense to be recognized over the bonds' life