Dot Company issued $200,000 of bonds on January 1, 20X1 with interest payable each year. The bonds had a stated rate of 8%. The bonds were set up as floating-rate debt with the rated pegged to LIBOR plus 3%. Which of the following will be the interest expense for year 1 if LIBOR is 5% ? Multiple Choice $18,000 $6,000 $10,000 $16,000