Question: On June 30 2009 Sam s Office Supplies issued 50 000 face

On June 30, 2009, Sam’s Office Supplies issued $50,000 face value of 8% bonds at 106. They were five-year bonds with interest paid semiannually, on December 31 and June 30.
1. What are the interest payments for the first two years?
2. Was the market interest rate higher or lower than 8% at the date of issue?
3. Will the interest expense be higher or lower than the interest payment?

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  • CreatedSeptember 01, 2014
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