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What is the total bond interest expense over the life of the bonds?

User Xeevis
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1 Answer

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Final answer:

The total bond interest expense over the life of the bonds is $480.

Step-by-step explanation:

To calculate the total bond interest expense over the life of the bonds, we need to first calculate the annual interest payment. In this case, the bond was issued for $3,000 at an interest rate of 8%, so the annual interest payment is $3,000 * 8% = $240.

As the bond is a two-year bond, the total bond interest expense over the life of the bonds is the sum of the annual interest payments for each year: $240 + $240 = $480.