Cheryl Inc issued $100,000,8%,5-year bonds.The current market rate was 7.5%.Cheryl received $101,136.80 for the bonds.Using the effective interest method of amortizing bond premium or discount,the amount of interest expense for the first semiannual payment was:
A) $3,500.00.
B) $3,136.32.
C) $3,386,32.
D) $3,792.63.
E) $4,250.00.
Correct Answer:
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