On January 1 of Year 1, Congo Express Airways issued $2,700,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,466,558 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $7781 every six months. The life of these bonds is:
A. 30 years.
B. 35 years.
C. 26.5 years.
D. 32 years
E. 15 years.
Answer: E
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