Answer:
interest expense for the first semiannual interest period and subsequent: 3,965.3 dollars
Explanation:
face value 94,000
proceeds 91,947
discount 2,053
under straight-line method the discount amortization will be equally distributed among the payment
2,053 / 10 payment dates = 205.3
Then, we have to add the cash outlay in favor of the bondholders:
94,000 face value x 8% coupon rate / 2 payment per year = 3,760
Total interest expense: 3,760 + 205.3 = 3,965.3
