XYZ, Inc. issued 4-year bonds with a face value of $500,000. The face rate of interest...
XYZ, Inc. issued 4-year bonds with a face value of $500,000. The face rate of interest was 8%, to be paid semiannually, but the market rate of interest was only 7%. If the current book value of the bonds is $515,286.36, what is the interest expense for the next interest period?
Group of answer choices
$20,611.45
$20,000.00
$36,070.04
$18,035.02
Homework Answers
Interest Expenses = Book value * market interest rate *6/12 = $
515,286.36*7%*6/12
= $18,035.02 (Answer)
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