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    fortwife's Avatar
    fortwife Posts: 3, Reputation: 1
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    #1

    Nov 11, 2007, 04:53 PM
    Interest expense on bonds
    I'm not sure how to calculate the interest expense on bonds.

    My question: on January 2, 2008 a company issued $500,000, 10 year bond for $574,540. The bonds pay interes 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?

    Can you get me started.
    I feel like it pretty easy, but I can't figure it out...

    Thanks in advance.
    mahesh_119's Avatar
    mahesh_119 Posts: 3, Reputation: 1
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    #2

    Nov 17, 2007, 07:32 AM
    My question: on January 2, 2008 a company issued $500,000, 10 year bond for $574,540. The bonds pay interes 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?

    Can you get me started.
    I feel like it pretty easy, but I can't figure it out...
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