1. Which defines serial bonds?

a. Matures on a single date. b. Secured only by the "full faith and credit" of the issuing corporation. c. Supported by specific assets pledged as collateral by the issuer.

2. Peke company issued a bond on 1/1/2018. Use the following amortization schedule for the bond to get the interest rates.

a. The annual stated interest rate on the bonds is _____.

b. The annual market interest rate on the bonds is ______.

Date	Cash Paid	Interest Expense	Decrease in Carrying Value	Carrying Value
1/1/2018				$104,212
12/31/2018	7,000	$6,253	$747	$103,465
12/31/2019	7,000	$6,208	$792	$102,673
12/31/2020	7,000	$6,160	$840	$101,833
12/31/2021	7,000	$6,110	$890	$100,943
12/31/2022	7,000	$6,057	$943	$100,000