On January 2, 2008, a company issued $500,000, 10-year bonds for $574,540. The bonds
Pay interest on June 30 and December 31. The face rate is 8%, and the market rate is 6%.

The interest expense on the bonds at June 30, 2008, is
A. $2,764. C. $20,000.
B. $17,236. D. $22,764

I'm assuming this is a homework problem. You really should attempt the problem first and then post whatever work you have done. Then someone can help you from there.

You don't learn by someone just giving you answers, and if your recent post on the accounting forum is an indication, it seems like that is what you want... just answers.