Problem:
On January 1, 2013, Janus Company issued $5 million of 10-year bonds at a 10% stated interest rate to be paid semiannually. Assume SL amortization.
Required:
If Janus issued the bonds at a price of 106.5, the amount of interest expense on June 30, 2013 equals
A) $467,500
B) $440,875
C) $233,750
D) $222,044
Note: Please provide through step by step calculations.