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How much interest expense will Whitmore Corp recognize

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Question - On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that pay interest annually on December 31st each year. Bonds of similar risk and maturity are paying 7%.

How much interest expense will Whitmore Corp recognize on December 31, 2019 when they make the first interest payment?

a. $49,651

b. $54,000

c. $63,837

d. $45,294

Reference no: EM132760203

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