Skip to main content
GAAP vs. IFRS: Liabilities
15. GAAP vs IFRS / GAAP vs. IFRS: Liabilities / Problem 8
Problem 8

A bond with a face value of \$200,000 is issued at a discount, receiving \$190,000. The coupon rate is 6% and the market rate is 7%. What is the interest expense for the first year using the effective interest method?