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Calculate the total amount of interest expense

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QUESTION - Assume that the following information is relevant for one of the bond issues of Chris Company:

Face value $800,000

Bond term 15 years

Stated interest rate 12%

Market interest rate 8%

Issue date July 1, 2012

Interest payment dates June 30 and December 31 each year (paid semiannually).

The total amount of interest expense to be recognized on December 31, 2012 (the first interest payment date) using the straight line interest method is:

$52,549.12.

$65,584.96

$72,737.28.

$43,056.64.

Reference no: EM132432947

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