Squabb Corporation issued a $$12,000,000,5-$year bond, with a contract rate of $8\%.$ The market rate of interest for similar bonds was $6\%.$ Interest is payable semi$-$annually.

The journal entry to record the issuance of this bond will include...

a$)$ a debit to Interest Expense

b$)$ a credit to Premium on Bonds Payable

c$)$a credit to Cash

d$)$a debit to Bonds Payable

Blu$-$Star Corporation issues a $$15,000,000,20-$year bond with a contract rate of $9\%.$ The market rate of interest for similar bonds is $10\%.$ Interest is payable semi$-$annually.

What is the amount of interest expense Blu$-$Star Corporation will recognize with each semi$-$annual interest payment to bondholders? Round to the nearest whole dollar.

a$)$$$675,000$

b$)$$$491,300$

c$)$$$707,172$

d$)$$$822,200$