Question - On January 1, 2014, Huff Corp. issued $1,000,000 face value of 10% per year bonds (with annual interest payments to be paid each 31st December) at a time when the market demanded an 11% return. The original maturity was ten years. Using the effective interest rate method of amortization, calculate the interest expense for 2015.
a) $103,521.85
b) $103,909.25
c) $207,431.09