When bonds are sold at a discount and the effective interest method is used, at each

subsequent interest payment date, the cash paid is:

Multiple Choice

a$)$ Less than the effective interest.

b$)$ Equal to the effective interest.

c$)$ More than if the bonds had been sold at a premium.

d$)$ More than the effective interest.

Oregon Company's employees are eligible for retirement with benefits at the end of the year

in which both age $60$ is attained and they have completed $35$ years of service. The benefits

provide $15$ years' reimbursement for health care services of $$20,000$ annually, beginning one year

from the date of retirement.

Ralph Young was hired at the beginning of $1988$ by Oregon after turning age $22$ and is expected

to retire at the end of $2026($age $60).$ The discount rate is $4\%.$ The plan is unfunded.

The PV of an ordinary annuity of $$1$ where $n=15$ and $i=4\%$ is $11\mathrm{.}11839.$

The $PV$ of $$1$ where $n=2$ and $i=4\%$ is $0\mathrm{.}92456.$

With respect to Ralph, what is Oregon's accumulated postretirement benefit obligation $($APBO$)$ at

the end of $2024,$ rounded to the nearest dollar?

Multiple Choice

a$)$ $$130,544$

b$)$ $$205,593$

c$)$ $$195,050$

d$)$ None of these answer choices are correct.