On July 1, 2017, Jason Company purchased $60,000 of ten-year 6% bonds of Santo, Inc., for $51,850, to be held-to-maturity. Interest is payable semiannually on June 30 and December 31. The effective yield on the investment is 8%. What amount of interest income should Jason record for the six-month period ended December 31, 2017?
A. $2,063.04
B. $2,084.96
C. $2,074.00
D. $2,400.00
Answer: C
Business
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