On July 1 2013, Tan Corporation acquired as a long term investment $ 480 million 6% XYZ Bonds dated July 1. 2013. Tans management has the positive intent and ability to hold the bonds until maturity. The market rate for bonds of similar risk and maturity was 8%. Tan paid $ 400 million for the bonds. Tan will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2013 was $ 420 million and December 31, 2014 was $410 million Monkey Technologies Inc. purchased as a short-term investment $80 million of 8% bonds. The effective interest rate is to be used ANSWER THE FOLLOWING QUESTIONS BASED ON THE ABOVE