10. If the market interest rate is greater than the contractual interest rate, bonds will sell a at a premium, b. at a discount" c. at face value. :1. only after the stated interest rate is increased. 11. If twenty $1,000 convertible bonds with a carrying value of $2 5,000 are converted into 3,000 shares of $5 par value common stock, the journal entry to record the conversion is a. Bonds Payable ........................... 25,000 Common Stock ......................... 25,000 b. Bonds Payable 20,000 Premium on Bonds Payable 5,000 Common Stock ......................... 25,000 c. Bonds Payable ........................... 20,000 Premium on Bonds Payable 5,000 Common Stock ......................... 15,000 Paidin Capital in Excess of Par 10,000 cl. Bonds Payable 25,000 Discount on Bonds Payable 5,000 Common Stock ......................... 15,000 Paid-in Capital in Excess of Par 5,000