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.