On January 1, 2016, Debo, Inc. issued $450,000 of 6%, 5-year bonds for $431, 288. The bonds are dated January 1, 2016 and pay interest semiannually on June 30 and December 31.
The effective rate for bonds of similar risk and maturity on the date of issuance was 7%.
Debo's fiscal year-end is December 31. Enter the requested amounts below. Round all amounts to the nearest whole dollar.
Do not enter dollar signs, commas or decimals. What is the total amount of cash interest that will be paid over the life of the bond?