Question

On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102. The straight-line method is used to amortize any bond premium or discount. What is the total interest expense for the life of these bonds?

A. $975,000
B. $964,000
C. $936,000

D. $772,000
E. $990,000

Answer

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