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On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payble semi-annually each July 1 and Jan

On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payble semi-annually each July 1 and Jan 1. The market requires a 4% return.

What is interest expense recorded in the first year?

a. $21.12

b. $30.00

c. $60.00

d. $42.06

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