Total interest expense over the life of bond


Question: Case Corp. issued $200,000, 5%, 3-year bonds at 104, with interest payable semi-annually. The total interest expense (the total cost of borrowing) over the life of the bond is:

A)    $26,000
B)    $18,000
C)    $22,000
D)    $38,000
E)    $30,000

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Accounting Basics: Total interest expense over the life of bond
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