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How much total interest will be recorded by B-B co

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Problem 1: B&B Co. issued $250,000 of 10 year zero-coupon bonds on January 1 at a price of $187,500. How much total interest will be recorded by B&B co. as interest expense over the 10 year life of the bonds?

A. $75,000

B. $62,500

C. $12,500

D. There is insufficient information to calculate this number.

Reference no: EM132693353

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