Calculate the amount of interest expense on the annual


On January 1, 2016 Alcon Corporation issued a 5-year $100,000 note with 10% annual coupon (assume interest will be paid every 6 months). Interest rates decreased to 9% just prior to issuance. Calculate the amount of interest expense on the annual December 31, 2016 income statement. Calculate the amount of interest on the cash flow statement supplemental disclosures for the same time period. Hint: You must calculate by analyzing the first two 6 month periods individually. You may round to dollars. Show all of your work to be eligible for full credit.

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Financial Management: Calculate the amount of interest expense on the annual
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