In 2015, Suez Company Issued $200,000 of Bonds for $189,640

In 2015, Suez Company issued $200,000 of bonds for $189,640.If the face rate of interest was 6.73% and the effective rate of interest was 8%, how would Suez calculate the interest expense for the first year on the bonds using the effective interest method?

A) $189,640 × 6.73%
B) $189,640 × 8%
C) $10,000 × 6.73%
D) $10,000 × 8%