A corporation issued $200,000, 10%, 5-year bonds on January 1, 2017 for $216,222 which reflects an effective-interest rate of 8%. Interest is paid semi-annually on January 1 and July 1. The amount of bond interest expense to be recognized on July 1, 2017, is

A) $10,000.

B)$8,000.

C)$10,811.

D)$8,649.

2) On January 1, 2017, $1,000,000, 5-year, 5% bonds, were issued for $957,349. The interest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1. How much interest is paid at each interest payment date?

A

$25,000

B

$50,000

C

$30,000

D

$60,000