Multiple Choice
On January 1, 2016, Lumos Maxima, Inc. issued $800,000, 10-year, 10% bonds for $750,000. The bonds pay interest on June 30 and December 31. The market rate is 12%.
How much is the interest expense on the bonds for the first interest payment on June 30, 2016?
A) $36,000
B) $45,000
C) $86,400
D) $43,200
Correct Answer:
Verified
Correct Answer:
Verified
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