What amount of interest expense should be recorded

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Reference no: EM133433395

Question: On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

Note: Use appropriate factor(s) from the tables provided.

What amount of interest expense should be recorded on June 30 and December 31 of this year?

Reference no: EM133433395

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