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On January 1, 2018, Wildcat Company spent $88,417.40 to purchase bonds with face value of 100,000. The stated interest rate on the bonds is 7%.

On January 1, 2018, Wildcat Company spent $88,417.40 to purchase bonds with face value of 100,000. The stated interest rate on the bonds is 7%. The bonds are to be held to maturity. The bonds pay interest semiannually on June 30 and December 31. These bonds will mature in 5 years from the date of purchase. On December 31, 2018 the fair value of the bonds is $93,458.16. How much interest revenue will be recognized in 2018?

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