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How much interest expense should Bulldogs recognize

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Reference no: EM133087291

Question - Company Bulldogs issued fixed-rate 4.00% bonds due 2019 with a $1,000,000 face value on January 1, 2016 (meaning it is 4-year bond). The effective/market interest rate is 6.00%. Recall that cash interest payments were paid semi-annually. How much interest expense should Bulldogs recognize when it made its first coupon payment?

Reference no: EM133087291

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