Travel Inc had issued ten-year semi-annual bonds of Face value $1,000,000 and coupon rate 10% at 98.

a. The interest expense recorded over the life of the bond would be $1,000,000

b. The cash interest paid over the life of the bond would be $980,000

c. The interest expense recorded over the life of the bond would be $1,020,000

d. The interest expense recorded over the life of the bond would be $980,000