1. The market rate of a bond is higher than the stated rate when bonds are sold at: a. Face value b. A discount C. A premium d. None of these choices are correct. 2. When bonds are issued at a discount, the carrying value of the bond is: a. The face value less discount on bonds payable b. The face value plus discount on bonds payable C. The face value d. None of these choices are correct. 3. If bonds with a face value of $50,000 are issued at 95, what amount would they be issued for? a. $52,500 b. $50,095 C. $47,500 d. $95 4. When bonds are issued at a discount, how is the discount amount treated by the issuing company? a. It is amortized over the life of the bond. b. It is recorded as a loss on issuance. C. It is adjusted with the interest payment. d. It is collected at the time of maturity. 5. If the interest paid is $5,000 and discount amortized is $500, the interest expense will be: a. $5,500 b. $4,500 C. $5,000 d. $500