Question: Question 25 (20 points) Tu-Tu Corp issues a 6-year, $100,000 bond with a stated interest rate of 10.00% The market rate is 8.00%. Interest is

Question 25 (20 points) Tu-Tu Corp issues a 6-year, $100,000 bond with a stated interest rate of 10.00% The market rate is 8.00%. Interest is paid semi-annually. What is the amortized premium amount at the end of year 3? (The effective interest rate method of amortization is used.) a) None of these is the correct answer 9 10 b) $649.57 3 c) $624,59 d) $675.55 Question 26 (1 point) If a bond is trading above par, the interest expense will be greater than the interest Ma ook A $ 8 7 8 0 3 5 6 P E Y R . H K. F D

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