A company issued 6-year, 8.50% bonds with a par value of $103,000. The market rate when the bonds were issued was 8.00%. The company received $105,417 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:
A. $8755.00.
B. $4377.50.
C. $2188.75.
D. $4216.68.
E. $8342.87.
Answer: D
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Answer the following statement true (T) or false (F)
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