The following amortization schedule is related to a bond issuance on January 1, 2020. Amortization Schedule Effective Amortization Cash Interest Carrying value Interest amount 01/01/20 $41,066 07/01/20 $1,600 $1,437 $163 40,903 01/01/21 1,600 1,432 168 40,735 07/01/21 1,600 1,426 174 40,560 01/01/22 1,600 1,420 180 40,380 07/01/22 1,600 1,413 187 40,193 01/01/23 1.600 1,407 193 40,000 $9,600 $8,534 $1,066 The annual market interest rate is 7%. 4%. 8%. 3.5%