Bond Interest Expense: On Jan. 1 FY1, Giamartino Inc. issues

Question: Bond Interest Expense: On Jan. 1 FY1, Giamartino I…

 

Bond Interest Expense: On Jan. 1 FY1, Giamartino Inc. issues a 3 year 8% bond with a face value of $100000 for $97421 when the market interest rate is 9%. Interest is paid semiannually on Jan. 1 and July 1. Calculate interest expense for the six months ended 12/31/FY1. Please show work.