Question 35 (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 initial carrying value of the bond? (The straight-line method of amortization is used.) a) $100,000.00 Ob) $110,728.63 c) $109,385.35 d) $108,782.13 Question 37 (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. Assume Tu-Tu Corp pays $105,000 to retire the the bond at the end of the third period. (The effective interest rate method of amortization is used.) What amount is recorded as the Gain on Retirement? a) $7,435.64 Ob) $2,721.02 Oc) $2,435.64 d) $5,000.00 Question 40 (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 interest expense at the end of year 3? (The effective interest rate method of amortization is used.) a) $4,324.45 b) $4,350.43 c) $4,375.41 d) $4,325.09