MNO Corporation issued $100,000 face value, 9% (contractual rate), 10 -year bonds. Bond interest is paid semi-annually. The market rate of interest on the issue date was 8%, and as a result MNO Corporation received $106,796 in cash for the bonds. 12. On the first semi-annual interest payment date, the holders of these bonds would be paid: A. $4,500 B. $4,272 C. $4,000 D. $4,806 E. Some other amount 13. On the first semi-annual interest payment date, the amount of premium that MNO Corporation would amortize by the effective-interest method is: A. $306 B. $272 C. $228 D. $500 E. Some other amount