4. Yale Corporation issued to Zap Corporation $70,000, 10% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1, 2020. Assume that the company uses the effective interest method for amortization. If the bonds were sold at 97, yielding 10.49%. Which of the following is true for journal entries to be made at June 30, 2020, for interest payment if Effective interest method is used.

Group of answer choices

a) Interest payable is $3,565

b) Discount on Bond Payable amortization is $65

c) Cash payment is $3,565

d) Interest expense is $3,500