Use the following to answer questions 1-3: Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1, 2017 at 961 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1,2018, $1,200,000 of these bonds were converted into 500 shares of S20 par value common stock. Accrued interest was paid in cash at the time of conversion. 1. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1,2017? A) $129,000. B) $135,000. C) $141,000. D) $270,000. 2. What should be the amount of the unamortized bond discount on April 1, 2018 relating to the bonds converted? A) $46,800 B) $43,200. C) $23,400. D) $44,400 3. What was the effective interest rate on the bonds when they were issued? A) B) C) D) 9% Above 990 Below 990 Cannot determine from the information given