7. The effective (market) rate of interest is 10% on a $100,000 bond issue; the stated rate is 8%. The annual interest paid is a) $6,000 b) $2,000 c) $8,000 d) $10,000 8. Howsen Corp. issued $10,000, 5% five-year bonds at 102. The total interest expense over the life of the bond is: a) $2,700 b) $2,300 c) $700 d) $200 e) $2,500