On June 30 2010 Nikki C Records Inc issued 35 000
On June 30, 2010, Nikki C. Records, Inc., issued $35,000 worth of 8% bonds for $35,000. The interest is paid annually on 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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