11. On January 1, 2019, Haste Enterprises issues 4-year, $100,000 bonds that pay semiannual interest of $5,000. The bonds pay interest on June 30 and December 31. If the effective annual rate of interest is 12%, what is the issue price of the bonds?

a. 95,653

b. 94,601

c. 93,790

d. 78,739

13. On January 1, 2018, Solo Inc. issued 500 of its 10%, $1,000 bonds at 105. Interest is payable semiannually on June 30 and December 31. The bonds mature on December 31, 2027. Solo paid $10,000 in bond issue costs. Solo uses straight-line amortization.

The amount of interest expense for 2018 is:

a. 48,500

b. 50,000

c. 52,500

d. 55,000