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On July 1, 2010 a semi-annual $800,000 5 year bond with contractual (or coupon) rate of 10% had a Net book value of $704,171. The
On July 1, 2010 a semi-annual $800,000 5 year bond with contractual (or coupon) rate of 10% had a Net book value of $704,171. The bond had been issued at a discount rate of 16% and matures on December 31, 2012. The total interest expense recorded on June 30, 2011 (rounded) would be:
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