Problem: Module 3 Textbook Problem 4 Learning Objective: 3-5 Show how bonds issued at face value affect financial statements Milan Company issued bonds with a face value of $212,000 on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a six-year term. The bonds were issued at face value. Interest is payable on an annual basis. Required a. What total amount of interest will Milan Company pay in Year 1 if bond interest is paid annually each December 31? b. What total amount of interest will Milan Company pay in Year 1 if bond interest is paid semiannually each June 30 and December 31? (Do not round intermediate calculations.) Total amount of interest b. Total amount of interest $ 12.720