Discount-Mart issues $20 million in bonds on January 1, 2012. They have a ten-ye

Question

Discount-Mart issues $20 million in bonds on January 1, 2012. They have a ten-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

What is the interest expense on the bonds in 2012? (Round your answer to the nearest whole dollar amount.)

$1,255,302.

$1,251,684.

$2,506,986.

$2,400,000.

Discount-Mart issues $20 million in bonds on January 1, 2012. They have a ten-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

Explanation / Answer

Interest Expense in bonds in 2012 = Interest expense on 30th June 2012 + Interest expense on 31st Dec 2012

= 1255302 + 1259173

= $2506986

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.