BOND ISSUE PRICE AND INTEREST EXPENSE

On January 1, Year 6, The Corporation issued $1,000,000 face value, 20-year bonds. The bonds carry coupon interest of 6 percent per year, payable semiannually on June 30 and December 31. The bonds were initially priced on the market to yield 8 percent, compounded semiannually (for an effective annua…