Question
On 1/1/X4, five-year semiannual 9% term bonds with a face value of $1,000,000 were issued for $961,391. The bonds were issued to yield a market
On 1/1/X4, five-year semiannual 9% term bonds with a face value of $1,000,000 were issued for $961,391. The bonds were issued to yield a market rate of 10% per year, compounded semiannually. If the effective interest method of amortization is used, what is the total interest expense for the year X4?
A. $48,070
B. $48,861
C. $96,140
D. $96,293
E. $97,722
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Financial Accounting And Reporting A Global Perspective
Authors: Herve Stolowy, Yuan Ding, Luc Paugam
6th Edition
147376730X, 9781473767300
