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What would be the total interest cost of the bond

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Question - King Inc. issued 10,000, $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is partial bond amortization schedule for the bonds:

Payment

Cash Interest

Effective Interest

Decrease in balance

Outstanding Balance




6,261,343

1

200,000

313,067

113,067

6,374,410

2

200,000

318,720

118,720

6,493,130

3

200,000

324,657

124,657

6,617,787

4

200,000

330,889

130,889

6,748,676

Required - What would be the total interest cost of the bond over their full term?

Reference no: EM133188894

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