Question: 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

Tu-Tu Corp issues a 6-year, $100,000 bond with a stated interest

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) $4,325.09 c) $4,375.41 d) $4,350.43

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