how do you do this problem?
A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2007. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, how much interest expense will be recognized in 2007?
$195,000
$390,000
$392,124
$392,083
Comments
Listen, if your trying to take a test on financial planning please work it out yourself...think think! If your working this kind of problem you should at least have some idea on how to solve it.
Good luck!