1. Hector Kan vast amounts of corporate bonds Suppose HK buys $1.300.000 of Olon bonds at a price of 103 The Olon bonda pay cash interest at the annual rate of 7% and mature at the end of five years (The bonds pay cash interest any How much did Hk pay to purchase the bond levestment? How much will collect when the bond investment matures? How much cash interest will receive each year from on? Wis annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Give your reason Computers annual interest revenue on this bond investment. Use the straight-line method to amortize the Investment 1. How much did pay to purchase the band investment? How much will keelect when the band investment matures? HK 5 purchase re bond investment Hk wil colects maturity 2. How much cash interest will receive each year from Orion RK wil receive annual cash interest of 3. WHICs annual revenue on the bend imestment be more or less than the amount of cash interest moved each year? Give your reason O A Annual interest revenue will be more than the cash interest received each year because the investor bought the bonds at a premium. The difference between the purchase price paid and the face amount collected the premium) creates an noresse in interest revenue over the life of the bonds OB Annual interest revenue wo be feathan the cash interest receved each year because the investor bought the bonds at a discount. The difference between the purchase price paid and the face amount ootected (the discount creates a reduction and interest revenut over the life of the bonds OC Annual interest revenue will be than the cash interest receved each year because the investor bought the bonds at a premium. The difference between the purchase price paid and the face amount collected the premium creates a reduction in interest revenue over the life of the bonds OD. Annuairest revenue will be more than the cash interest received each year because the investor bought the bonds discount. The difference between the purchase price paid and the face amount collected the discount creates an increase in interest revenue over the isol the bonds 4. Computers annual interest were on the bond investment Use the straighine method to amortize the investment HK wil recognize annual interest revenues on the band investmere