Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is paid semiannually. Sykora received $490,222 for the bonds at issuance. The effective rate on these bonds is: Select one: a. 5% b. 10% c. 4% d. None of these are correct. e. 8% Bay's footnote regarding employee stock compensation details the grant of 2 million options during the year, the fair-value of which was computed as $7.18. If the options have, on average, a four-year vesting schedule and the company faces a 35% tax rate on income, what affect would this option grant have on Bay's accounts for the year? Select one: a. Indeterminable since the number of options exercised is unknown. b. $5,026,000 decrease to deferred tax asset, $5,026,000 increase to tax expense c. $5,026,000 increase to deferred tax asset, $5,026,000 decrease to tax expense d. $1,256,500 increase to deferred tax asset, $1,256,500 decrease to tax expense e. $1,256,500 decrease to deferred tax asset, $1,256,500 increase to tax expense