Find the total interest expense

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Reference no: EM1315719

Calculation of the total interest expense over the life of the bonds.

Stacy Company issued five-year, 10% bonds with a face value of $10,000 on January 1, 2007. Interest is paid annually on December 31. The market rate of interest on this date is 8%, and Stacy Company receives proceeds of $10,803 on the bond issuance.

Question:

What is the total interest expense over the life of the bonds cash interest payments? Premium amortization?

Reference no: EM1315719

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