Yamaska Mining issued a 5-year, $50 million face, 6% semiannual bond when market interest rates were at 7%. What is the initial balance sheet liability and what is the cumulative interest expense (in dollars) that the company should report following the first half of the second year of the bond’s life (the third semiannual period) Cumulative interest expense Initial liabilityto end of first half of year 2 ()
A. $47920849 $4500000
B. $47920849 $5051516
C. $50000000 $9000000