Which of the following is a process by which investment bankers purchase new securities directly from the issuing company and resell them to the investors?

a) agency marketing.
b) underwriting.
c) distribution.
d) private placement.

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)