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Pearl Ltd issues $7 million in 5-year debentures that pay interest every 6 months at a coupon rate of 12% per annum. The required market

Pearl Ltd issues $7 million in 5-year debentures that pay interest every 6 months at a coupon rate of 12% per annum. The required market rate of return is 16% per annum. What is the amount of interest expense account for the first interest payment (rounded to the nearest dollar)? $360 000 $420 000 $484 851 $554 116

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