A bond with a face value of $100,000 was issued for $93,500 on January 1 of this year. The stated rate of interest was 8 percent and the market rate of interest was 10 percent when the bond was sold. Interest is paid annually. How much interest will be paid on December 31 of this year?

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I know the correct answer is $8,000 but when I first did the problem I got an answer of $9,350 using this calculation:

* Interest = 93,500 * 10% = $9,350

Basically, I thought when calculating interest you multiplied the market rate by the NBV at the time. I'm confused about why it's $8,000? What is the difference between the "interest payment" and the "interest expense"?