Sterling Company issued $100,000 of its 8%, five-year bonds on January 1, 2017, at 98. Interest is paid on June 30 and December 31 every year. The bonds are callable at 103 and straight-line amortization is used. The bonds are recalled on April 1, 2019. Interest expense for 2019 will be? Answer is $2,100 how do you get this?
Sterling Company issued $100,000 of its 8%, five-year bonds on January 1, 2017, at 98. Interest is paid on June 30 and December 31 every year. The bonds are callable at 103 and straight-line amortization is used. The bonds are recalled on April 1, 2019. Interest expense for 2019 will be? Answer is $2,100 how do you get this?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sterling Company issued $100,000 of its 8%, five-year bonds on January 1, 2017, at 98. Interest is paid on June 30 and December 31 every year. The bonds are callable at 103 and straight-line amortization is used. The bonds are recalled on April 1, 2019. Interest expense for 2019 will be?
Answer is $2,100 how do you get this?
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