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Sparkle Shoes Company issued ten-year, 7% bonds with a total face value of $1,800,000. The...

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Accounting

Sparkle Shoes Company issued ten-year, 7% bonds with a total face value of $1,800,000. The bonds make a cash interest payment each year on December 31. The proceeds of the issuance will be used to invest in state-of-the-art sneakers in all of its stores. At the time of the issuance, the market rate was 8%. What is Sparkle Shoe's total interest expense over the life of the bonds?
Select one:
A. 1,313,575.53
B. 1,514,501.36
C. 1,380,781.47
D. 1,246,443.98

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