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Your Company issued bonds with a par value of $ 1 , 0 0 0 , 0 0 0 at 9 7 on January 1

Your Company issued bonds with a par value of $1,000,000 at 97 on January 1, Year 1. The bonds had a stated interest rate of 4% with a 20 year term. Interest is paid annually on December 31. At the time the bonds were issued the market rate was 5%.
How much interest expense would Your Company record on each payment date?

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