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What interest expense would it recognize

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Question - Auerbach Inc. issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $350 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 12%.

Assuming that Auerbach issued the bonds for $309,853,600, what interest expense would it recognize in its 2021 income statement?

Reference no: EM132503926

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