On January 1 of Year 1, Congo Express Airways Issued

Multiple Choice

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 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 $10,087 every six months. The life of these bonds is:

A) 30 years.
B) 26.5 years.
C) 35 years.
D) 32 years
E) 15 years.