Question: A 7 % $ 1 0 0 , 0 0 0 bond was dated January 1 , 2 0 1 2 and was issued on

A 7% $100,000 bond was dated January 1,2012 and was issued on January 1,2012 at a price of 96. The bond's market or effective interest rate is 8% per year. The bond pays interest on each June 30 and December 31. Under the effective interest rate method of amortizing the amount of interest expense for the six-month period of January 1 through June 30,2012 the interest rate of _____% will be multiplied by $_____________ to arrive at the six-month interest expense of $_________.

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