A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of premium amortization per semi-annual interest period is:
A)$3,289.50.
B)$3,500.00.
C)$210.50.
D)$181.59.
E)$421.00.

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The Answer of A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of premium amortization per semi-annual interest period is:
A)$3,289.50.
B)$3,500.00.
C)$210.50.
D)$181.59.
E)$421.00.

A Company Issued 5-Year, 7% Bonds with a Par Value