A company issued 5-year, 7% bonds with a par value of $900,000. The market rate
ID: 2503319 • Letter: A
Question
A company issued 5-year, 7% bonds with a par value of $900,000. The market rate when the bonds were issued was 6.5%. The company received $909,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
31,500
62,100
30,600
63,000
A company issued 5-year, 7% bonds with a par value of $900,000. The market rate when the bonds were issued was 6.5%. The company received $909,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
31,500
62,100
30,600
63,000
Explanation / Answer
30,600