On January 1 of Year 1, Congo Express Airways issued $4,900,000 of 7%, bonds that...
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Accounting
On January 1 of Year 1, Congo Express Airways issued $4,900,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,463,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $11,500 every 6 months. The life of these bonds is:
A. 39 years
B. 19 years
C. 43 years
D. 38 years
E. 13 years
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