On January 1, 2020 a corporation issued $600,000 face value

of bonds due in 10 years with a contractual interest rate of 7%.

Interest is payable each July 1 and January 1.

The bonds are priced to yield 8%.

(1) What is the formula for calculating interest? HINT: The same formula is used to calculate Interest Paid and Interest Expense, although the numbers needed are different numbers