Is there a mistake in the solution to Problem 2C of Reading 39 (p. A-37). The solution to Problem 2C states that the interest expense is $6,908 – which does not make sense to me. Since Problem 2C is a $100,000 full-coupon bond issuead at par with a 12% coupon, wouldn’t the interest expense simply be $12,000, too? That is, wouldn’t the coupon payment per year be the same as the interest expense per year, since this is a bond issued at par?