Ellis issues 7.0%, five-year bonds dated January 1, 2015, with a $580,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $604,741. The annual market rate is 6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

1. Compute the total bond interest expense over th e bonds' life. Total bond interest expense over life of bonds: Amount repaid: 10 payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 20,300 $ 203,000 580,000 783,000 604,741 $178,259