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    paul7688's Avatar
    paul7688 Posts: 1, Reputation: 1
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    #1

    Feb 11, 2009, 08:42 AM
    interest expense
    I have an 8% bond payable valued at $800,000 how do I calculate the interest expense
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 11, 2009, 05:20 PM

    Interest is equal to principal X rate X time.

    I = $8,000 X 8% = $640 a year

    If you have the bond for 2 months then it is:
    I=$8,000 X 8% X 2/12
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