Question: Victor Inc. borrows $ 1 , 0 3 5 using a bond with a face value of $ 1 , 0 0 0 and a

Victor Inc. borrows $1,035 using a bond with a face value of $1,000 and a cash interest rate of 4% per year, for 3 years. Victor makes all the cash payments under the bond contract. Under GAAP, the total amount of interest expense Victor incurs over the three-year period is:

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