Using the straight-line method, the semiannual interest expense of a 11%, $500,000 bond for 10 years at 105 would be:

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The semiannual interest expense for a bond is calculated by taking the coupon rate (11% in this case) and applying it to the face value of the bond ($500,000), then dividing by 2 because it's semiannual. This gives us ($500,000 * 11%) / 2 = $27,500. The fact that the bond is issued at 105 is related to its issuance price and does not affect the calculation of semiannual interest expense using the straight-line method.

Using the Straight-Line Method, the Semiannual Interest Expense of a 11