On January 1, a company issued 6%, 10-year bonds with a face amount of $90 million for $83,604,780 to yield 7%. Interest is paid semiannually. What was the interest expense at the effective interest rate on June 30, the first interest date? (Enter your answers in whole dollars. Round percentage answers to 2 decimal places. (i.e., .0234 should be entered as 2.34).)
Amount x Effective Rate (%) = Interest Expense
? x ? = ?
4. On January 1, a company issued 2%, 10-year bonds with a face amount of $70 million for $58,553,901 to yield 4%. Interest is paid semiannually. What was the interest expense at the effective interest rate on the December 31 annual income statement? (Enter your answers in whole dollars. Round your intermediate calculations to the nearest dollar amount.)
Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Carrying Value
January 1 $58,553,901
June 30 ? ? $471,078
December 31 ? ? 58,883,900 58,883,900
Total $