Multiple Choice
On January 1, 2012, Aye Corp issues $100,000, 10%, 5-year bonds for $108,111. The market interest rate is 8%. Interest is paid semi-annually on January 1 and July 1. To the nearest dollar, the amount of premium amortized on July 1, 2012 is
A) $8,649.
B) $5,000.
C) $4,324.
D) $676.
Correct Answer:
Verified
Correct Answer:
Verified
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