Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.
- What would be the total interest cost of the bonds over their full term?

Question

Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. 
- What would be the total interest cost of the bonds over their full term?

Quizplus · Accepted Answer

($300,000 × 2 × 10) + ($10,000,000 - $8,640,967) = $7,359,033

Discount-Mart Issued Ten Thousand $1,000 Bonds on January 1, 2018