Question 25 Zero Company issued 10-year bonds on January 1. The 7% bonds have a face value of $900,000 and pay interest every January 1 and July 1. The bonds were sold for $790,960 based on the market interest rate of 9%. Zero uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Zero should record interest expense (round to the nearest dollar) of $71.186 $35,593 $31,500 $63.000