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Pearson Co issue its $133,800 at a price of 104, the stated rate is 9%, the bond term is 4 years, and the market rate

Pearson Co issue its $133,800 at a price of 104, the stated rate is 9%, the bond term is 4 years, and the market rate is 6%. Assume the term of the bonds is 4 years.

Using the effective interest method, the interest expense in the 1^st year will be $_____

_

Selected Answer:
1

Correct Answer:
8,349 1

Please explain the steps and math.Thanks

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