figuring out interest rate on discounted bonds
here is the problem Exercise 10-2 Straight-line amortization of bond discount L.O. P2
Sears issues bonds with a par value of $175,000 on January 1, 2009. The bonds' annual contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 6%, and the bonds are sold for $165,523.
Required:
1. What is the amount of the discount on these bonds at issuance? (Omit the "$" sign in your response.) That answer was easy it is $9,477. But this next question
2. How much total bond interest expense will be recognized over the life of these bonds?
I'm coming up with 6,620.92 The computer is telling me I'm wrong even when I round up to 6,621. I've also tried following the book step by step and I can't get the right answer. I cant' complete the rest of the problem without it. I also tried calculating 4 % of the non discount price of 175,000 which is 7,000. the computer is telling me its wrong as well.
What am I doing wrong?