(Answered) Question - on january 1 2016 an investor paid 297000 for

Accounting

Question - On January 1, 2016, an investor paid $297,000 for bonds with a face amount of $335,000. The stated rate of interest is 11% while the current market rate of interest is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2016 (assume annual interest payments and amortization)?

$32,670.

$38,610.

$43,550.

$36,850.

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