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Compute the interest expense on the bonds at June

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Question - On January 2, 2017, Garage Master Construction, Inc. issued $500,000, ten-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%. Compute the interest expense on the bonds at June 30, 2017?

a. $17,236.

b. $20,000.

c. $2,764.

d. $22,764.

Reference no: EM132560234

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