A company sells a 5-year,

8%

bond with a par value of

$100,000

when the market is

10%

for

$96,454

. The bond requires semi-annual interest payments of

$4,000

. Using the effective interest amortization method, the company will recognize interest expense on the first semi-annual interest payment.\

$5,000

\

$4,823

\

$3,858

\

$4,000

A company sells a 5 -year, 8% bond with a par value of $100,000 when the market is 10% for $96,454. The bond requires semi-annual interest payments of $4,000. Using the effective interest amortization method, the company will recognize interest expense on the first semi-annual interest payment. $5,000 $4,823 $3,858 $4,000