On January 1 of Year 1, Congo Express Airways issued $3,900,000 of 7%, bonds that pay...

On January 1 of Year 1, Congo Express Airways issued $3,900,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,492,000 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 $12,000 every 6 months. The life of these bonds is: a. 34 years. b. 17 years. c. 11 years. d. 33 years. e. 29 years

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