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  3. a company issues $25,000,000, 7.6%, 20-year bonds

A company issues $25,000,000, 7.6%, 20-year bonds to yield 8% on January 1, 2020. Interest...

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Accounting

A company issues $25,000,000, 7.6%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $24,505,180. Using effective-interest amortization, how much interest expense will be recognized in 2020?

a.

$1,961,623
b.

$1,960,250
c.

$980,207
d.

$1,960,815

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