A company issued 11%, 5-year bonds with a par value of $150,000. The market rate when the bonds were issued was 12%. The company received $144,481 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is:
A. $9000.00.
B. $16,500.00.
C. $17,337.72.
D. $8250.00.
E. $8668.86.
Answer: E
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