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Bonds were acquired at a price of $489,335 on January 1, 2020. The bonds make...

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Accounting

Bonds were acquired at a price of $489,335 on January 1, 2020. The bonds make semi-annual interest payments every June 30th and Dec 31st. The cash interest paid semi-annually is $13,750, based on a 5.5% interest rate. The market interest rate was 6% on the day the bonds were acquired. These bonds are classified as FVTPL. How much interest revenue will be reported on June 30th (the first interest payment)?

The correct answer is 13,750. Please give the calculation steps. Thanks

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