A company issued 10.0%, 5-year bonds with a par value of $160,000. The market rate when the bonds were issued was 11.0%. The company received $153,969.90 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is:
A. $16,000.00.
B. $8468.34.
C. $8494.10.
D. $16,962.44.
E. $8000.00.
Answer: C
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