Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an...
Evans & Sons, Inc., sold $100,000 face value, six percent coupon rate, four-year bonds, for an aggregate issue price of $95,000. Calculate the total interest expense to be recorded by the company over the four-year life of the bonds. _____________
Homework Answers
Total interest expense
| Interest paid (100000*6%*4) | 24000 |
| Discount on bond issue (100000-95000) | 5000 |
| Total interest expense | 29000 |
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Evans & Sons, Inc., sold $100,000 face value, six percent
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