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Bond Question CH14: On June 30, 2017, TAHOE Corp. issued $500,000 face value of 10%, 3-year bonds. The yield rate (market interest rate) is 12%, TAHOE uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. The first payment is December 31, 2017. * (Round answers to the nearest dollar) *I acknowledge that the present value calculation can vary depending on what you use (i.e., financial calculator vs. time value of money table). Please mark the closest answer when you find a difference (less than 10 dollars value) between your calculation and the choices. Present value of Single Sum 5% 6% 10% 12% 0.8638 0.8396 0.7513 0.7118 0.8227 0.7921 0.6830 0.6355 0.7835 0.7473 0.6209 0.5674 0.7462 0.7050 0.5645 0.5066 Present value of Ordinary Annuity 5% 6% 10% 12% 2.7233 2.6730 2.4869 2.4018 3.5460 34651 3.1699 3.0374 4 3295 4.2124 3.7908 3.6048 5.0757 4.9165 4.3553 4.1114 Above you calculate the interest expense for 2018 using the effective-interest method. Alternatively, you can calculate the interest expense using the straight-line method. Which one might report higher interest expense for the life of the bond (2017-2020)? Select one: a. Straight-line method O b. Effective interest method O c. Not enough information to answer O d. Same