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How much of the premium will be amortized on December

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Reference no: EM133005374

Question - On January 1 2021, A company issued a 10 year, $100,000.00 8% bond with interest payments on June 30th and December 31.

The bond issue was sold for $108,093.00.

Assuming an effective interest rate of 5%, approximately how much of the premium will be amortized on December 31 using the effective interest method?

a) $4000.00

b) $2669.89

c) $1330.11

d) $1297.67

Reference no: EM133005374

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