1. What would cause a bond to sell above or below its contract rate (stated rate)? 2. Why would a company issue bonds, instead of selling stock or borrowing from a bank? 3. Is it necessary to make adjusting entries for interest expense at year end? Why? 4. Which method of amortization is better--Straight Line or Effective Interest method? Why? 5. Why should a company collect the accrued interest on bonds when they are sold after issue date