Serenity Company issued $100,000 of 6 percent, 10-year bonds when the market rate of interest was 5 percent. The proceeds from this bond issue were $107,732. Using the effective interest method of amortization, which of the following statements is true? Assume interest is paid annually

a. Interest payments to bondholders each period will be $6,464.

b. Interest payments to bondholders each period will be $5,000.

c. Amortization of the premium for the first interest period will be $613.

d. Amortization of the premium for the first interest period will be $1,464.