What total amount of bond interest expense will be recognize

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Reference no: EM132043806

Question: Batata inc. issues 12.50%, 10-year bonds with a par value of $470,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.50%, which implies a selling price of 128 7/8. The straight-line method is used to allocate interest expense.

What are the issuer's cash proceeds from issuance of these bonds? _____

What total amount of bond interest expense will be recognized over the life of these bonds?

Payments of ______

par value maturity _______

less amount borrowed ________

Reference no: EM132043806

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