On January 1 of Year 1, Lily Company issued bonds with a couponrate of 7% and a face amount of $3,000. The bond interest paymentsare made twice each year on June 30 and on December 31. The bondsmature in 12 years. The market interest rate for bonds with thesame degree of riskiness is 10% compounded semi-annually. OnJanuary 1 of Year 1,Investor Company purchased all of the LilyCompany bonds when they were issued. Investor Company hasclassified this investment in bonds as a held-to-maturityinvestment. What is the total amount of interest revenue thatInvestor Company will report in Year 1 in connection with this bondinvestment? Of course, Investor Company uses the effective interestamortization method. Note: Round all of your calculations to thenearest penny.
| $237.90 |
| $28.60 |
| $620.94 |
| $62.09 |
| $210.00 |
| $238.60 |
