Using the straight-line method,the semiannual bond interest expense of a 12%,$300,000,15-year bond issued at 95 is:

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The bond's face value is $300,000 with a 12% annual interest rate, resulting in $36,000 annual interest or $18,000 semiannual interest. The bond is issued at 95, meaning it is sold for 95% of its face value, which is $285,000. The discount of $15,000 ($300,000 - $285,000) is amortized over 30 periods (15 years x 2), resulting in $500 per period. The semiannual bond interest expense is the semiannual interest payment plus the amortized discount: $18,000 + $500 = $18,500.

Using the Straight-Line Method,the Semiannual Bond Interest Expense of a 12%,$300,000,15-Year