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Using Straight-Line Amortization

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A company issues 20,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are 19,604,145. What is the interest expense using straight-line amortization?

a) 1,540, 207
b) 1, 560,000
c) 1, 569, 192
d) 1, 579, 793

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The solution provides the correct answer to the multiple choice question which states, A company issues 20,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are 19,604,145. What is the interest expense using straight-line amortization ...

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