On January 1 of Year 1, Congo Express Airways issued $5,000,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,520,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $12,000 every 6 months. The life of these bonds is:

Multiple Choice

• 20 years.

• 38 years

• 13 years.

• 42 years.

• 40 years.