On January 1, 2012, Fei Corp. issued a 3-ye 5% coupon, $100,000 face value bond. The bond was priced at an effective interest rate of 8%, yielding proceeds of $92,137. This is the first and only bond that Fei has ever issued. Fers Statement of Cash Flows for fiscal year 2012 had the following line items: 2012 $11,500 $10,350 $25,478 $23,675 2011 Net Income Depreciation Amortization of Bond Discount $2,418 SO What was Fei's Interest Expense on the bond during fiscal year 2012?
On January 1, 2012, Fei Corp. issued a 3-ye 5% coupon, $100,000 face value bond. The bond was priced at an effective interest rate of 8%, yielding proceeds of $92,137. This is the first and only bond that Fei has ever issued. Fers Statement of Cash Flows for fiscal year 2012 had the following line items: 2012 $11,500 $10,350 $25,478 $23,675 2011 Net Income Depreciation Amortization of Bond Discount $2,418 SO What was Fei's Interest Expense on the bond during fiscal year 2012?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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