Painting Pro reported three debt obligations: $ 64,000, 4.5% notes payable, $ 360,000, 6% bonds issued at par, and $1,344,000, 7% mortgage notes. If the market rate of interest averaged 5.8% during the year, what is Painting Pros weighted-average cost of debt?

		5.8%
		6.2%
		17.5%
		6.7%

Russell Co. Co. issued $40,000 of 7-year, zero-coupon notes on January 1 when the market yield was 4%. The bond agreement stated that compounding was semiannual. The issue price of the notes was $30,315. How much interest will Russell Co. Co. report on its income statement during the first year?

		$1,213
		$1,224
		$1,200
		$1,237