I need help with this one please. I am on a break and trying to study as well at work . plz help.

Designer Company issued 10-year bonds on January 1. The 8% bonds have a face value of $101,000 and pay interest every January 1 and July 1. The bonds were sold for $121,817 based on the market interest rate of 6%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of

a.$4,040

b.$3,655

c.$4,873

d.$3,030

A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,500. The entry to record the redemption would include a

a.loss on bond redemption of $1,500.

b.loss on bond redemption of $7,500.

c.gain on bond redemption of $6,000.

d.gain on bond redemption of $1,500.