In 2013, Karaoke Tunes Issued $200,000 of Bonds for $190,200

In 2013, Karaoke Tunes issued $200,000 of bonds for $190,200. If the stated rate of interest was 6.5% and the market rate of interest was 7.1%, how would the company calculate the discount at the time the bonds were issued using the effective interest method?

A) $190,200 * 7.1%
B) $190,200 * 6.5%
C) $200,000 * 7.1%
D) $200,000 * 6.5%