On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market interest rate is 4%. The issue price of the bond was $10,899. Your company used the effective-interest method of amortization. At the end of the first year, your company should: Multiple Choice debit Interest Expense for $567, debit Premium on Bonds Payable for $167.00, and credit Interest Payable for $400.00. debit Interest Expense for $567, credit Premium on Bonds Payable for $167.00, and credit Interest Payable for $400.00. debit Interest Expense for $400.00 and credit Interest Payable for $400.00.