On January 1, Y3, Sasha Ltd. sold five year, 6% bonds with a face value of $400,000. Interest will be paid semi-annually on June 30 and December 31. The bonds were sold for $417,505 to yield 5%. Using the effective-interest method of amortization of bond discount or premium, interest expense for Y3 is Question 10 options: $24,000 $20,000 $27,501 $20,837