Suffolk Corporation issued $100,000 of 20 year, 6 percent bonds at 98 on one of its semiannual interest dates. The straight line method of amortization is to be used. What is the total interest cost of the bonds?
1. $117,500
2. $120,000
3. $118,000
4. $122,000
Knollwood Corporation issued $300,000 of 30 year, 8 percent bonds at 106 on one of its semiannual interest dates. The straight line method of amortization is to be used. What is the total interrest cost of the bonds?
1. $738,000
2. $719,500
3. $702,000
4. $720,000
1. $117,500
2. $120,000
3. $118,000
4. $122,000
Knollwood Corporation issued $300,000 of 30 year, 8 percent bonds at 106 on one of its semiannual interest dates. The straight line method of amortization is to be used. What is the total interrest cost of the bonds?
1. $738,000
2. $719,500
3. $702,000
4. $720,000