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Find what is the interest expense that firm records on book

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Problem 1: On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%, the market rate is 12%, the term is three years and payments are made twice a year, on June 30 and Dec. 31. What is the interest expense that the firm records on its books when making the first cash payment to investors on June 30, 2021?

Option 1: $75,000

Option 2: $85,574

Option 3: $90,000

Option 4: $107,702

Option 5: 150,000

Reference no: EM132824736

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