On January 1 of Year 1, Congo Express Airways issued $4,600,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,280,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,000 every 6 months. The life of these bonds is:
A. 43 years
B. 16 years.
C. 32 years.
D. 46 years.
E. 12 years.
Answer: B
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