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How much is the total interest expense over the term of bond

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Problem 1: On January 1, 20x1, the BTr issues a 5-year, 6%, ?2,000,000 bonds for ?1,900,000.  Transaction costs on the issuance (bond issue costs) amount to ?59,708. Interest payments are due every December 31 but the principal is due only at maturity date. The bonds are subsequently measured at amortized cost. How much is the total interest expense over the term of the bonds?

a. 659,708

b. 759,708

c. 789,709

Reference no: EM132779063

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