Using the effective interest method

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On January 1, 2013 the Mack Company issues $16,000,000 of 11% bonds dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 4 years. The issue price of the bonds was $16,517,057.02 with no bond issue cost.

Using the effective interest method, how much interest expense should be recognized for the period ending June 30, 2013?

Reference no: EM13862402

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