Kim Co issued $80,000 of 4% bonds on June 1, 2007 at face value. The bonds pay interest semiannually on February 1 and August 1. The bonds are dated February 1, 2006, and a mature on February 1, 2010. The total interest expense related to these bonds for the year ended December 31, 2006 is
I am stuck. The actual problem is simular but the bonds pay interest is not semiannual. Where do I start
I am assuming that the bonds are issued on June 1, 2006 (it says 2007 in the question) and we are to find the interest expense till Dec ...
The solution explains how to calculate the interest expense for bonds issued at par when the issue date is different from the bond date