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wendy corporation issued $100000, 12%, 5-year bonds on January 1 20x1 for $92,280 The bonds will...

wendy corporation issued $100000, 12%, 5-year bonds on January 1 20x1 for $92,280 The bonds will yield a 12% return. Interest is paid semiannually on Januay 1 and July 1. The first interest payment is July 1, 20x1. Using the straight-line method, how much interest expense will Wendy record on July 1, 20x1

A. $6000

B. $5000

C. $6772

D. $5228

E. $10,456

I have the answer key so I know the answer is C, but I do not know how to get there.

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Solution Face Value of Bonds Issue price of Bonds Discount on issue of Bonds ($100,000 - $92,280) Coupon Interest rate Bond l

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