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On January 1 , a company issued 5 % , 1 0 - year bonds with a face amount of $ 8 0 million for

On January 1, a company issued 5%,10-year bonds with a face amount of $80 million for $74,049,340 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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