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A company issued five-year, 7% bonds with a par value of $175,000. The market rate when the bonds were issued was 6.5%. The company received $198,975 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

$6,125.00

$3,727.50

$13,928.25

$12,250.00

$6,964.12

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91610805

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