What the amount of recorded interest expense

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 Problem 1: A company issued 5-year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. The company received $808,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

Option 1: $28,000.

Option 2: $56,000.

Option 3: $55,200.

Option 4: $27,200.

Option 5: $28,800.

Reference no: EM132674093

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