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On January 1, a company issued 4%, 20-year bonds with a face amount of $55 million for $42,287,047 to yield 6%. Interest is paid semiannually.

On January 1, a company issued 4%, 20-year bonds with a face amount of $55 million for $42,287,047 to yield 6%. Interest is paid semiannually. What was the interest expense at the effective interest rate on the December 31 annual income statement?

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