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On January 1, 2021, Nell issued 600,000 in non-interest-bearing bonds that mature on January 1,...

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Accounting

On January 1, 2021, Nell issued 600,000 in non-interest-bearing bonds that mature on January 1, 2041. The bonds pay no interest during the period of time they are outstanding interest rate for borrowing with a similar risk and maturity is 12% and the bonds are priced to yield accordingly. What is interest expense in 2022?

a. $0

b. 62,202

c. 7,464

d. 8,360

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