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Business, 19.11.2019 04:31 kaylee0424

On january 1, 2016, a company issued $400,000 of 10-year, 12% bonds. the interest is payable semi-annually on june 30 and december 31. the issue price was $413,153 based on a 10% market interest rate. the effective-interest method of amortization is used. rounding all calculations to nearest whole dollar, what is the interest expense for the six-month period ending june 30, 2016?
a. $24,000.
b. $24,789.
c. $20,000.
d. $20,658.

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