QS $10-9($Static$)$ Straight$-$Line: Discount bond computations LO P$2$

Enviro Company issues $8\%,10-$year bonds with a par value of $$250,000$ and semiannual interest payments. On the issue date, the

annual market rate for these bonds is $10\%,$ which implies a selling price of $87\frac{1}{2}.$ The straight$-$line method is used to allocate interest

expense.

What are the issuer's cash proceeds from issuance of these bonds?

What total amount of bond interest expense will be recognized over the life of these bonds?

What is the amount of bond interest expense recorded on the first interest payment date?

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What are the issuer's cash proceeds from issuance of these bonds?

Cash proceeds