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Right Track Company sells $ 450,000 of 8%, 20-year bonds for 86.7816 on April 1, 2018. The market rate of interest on that day is
Right Track Company sells $ 450,000 of 8%, 20-year bonds for 86.7816 on April 1, 2018. The market rate of interest on that day is 9.5%. Interest is paid each year on April 1. The issue price of the bond is $ 390,517. Right Track Company uses the straight-line amortization method. The amount of interest expense for each year will be (Round intermediary calculations to the nearest whole number.) A. $ 38,974. B. $ 22,361. C. $ 45,724. D. $ 36,000. E. none of these
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