On January 1, 2012, the City of Austin issued 55,000,000 in mature in three years. The bonds have a stated rate of 8 percent and pay interest on June 30 and December 31 each year. When the bonds were sold, the market rate was 9 percent. The City of Austin uses the effective interest method. Upon Issuing the bonds on January 1, 2012, the City of Austin will receive cash in the amount of 0 A.35,000,000 OB.$5,131,053 OC 34,871,053 OD. 54,931.276