A company issues 100 bonds with a par value of $1,000 each. Below is the partial table of amortization of the bonds. 

YEAR	INTEREST PAID	INTEREST EXPENSE	AMORTIZATION	BOOK VALUE
				$94,349
1	$11,000	--	--	--
2	11,000	11,361	361	95,032

These bonds were issued:

a. at face value

b. with prime

c. With discount

d. with guarantees

The effective interest rate is: a. 11% b. 12% c. 6% d. 5.5%

Please, show your process