Effective Interest Amortization of Bond Premium or Discount

11. Long Term Liabilities / Effective Interest Amortization of Bond Premium or Discount / Problem 6

Problem 6

Calculate the interest expense for a bond with a carrying value of \$95,000 and a market interest rate of 8% for a semiannual period.

\$4,000

\$3,600

\$3,800

\$7,600