[Fact Pattern #1] A portion of a bond amortization schedule for bonds issued January 1, Year 1, is given below. The face amount of the bonds is $100,000. Carrying Cash Effective Premium Amount Date Interest Interest Amortization of Bonds 1/1/Year 1 $104,212 12/31/Year 1 $7,000 $6,253 $747 103,465 12/31/Year 2 7,000 6,208 792 102,673 12/31/Year 3 7,000 6,160 840 101,833 [8] (Refers to Fact Pattern 1) What are the face and effective rates of interest on the bonds? Face 6% 6% Effective 6% 7% 6% 17%