13) Corp issued a $1,000, 5%, 4-year bond. The market rate of interest at the time of bond issuance was 7%. Did this bond sell for a discount to face value, at face value, or at a premium to face value?

14) Referring to # 13, how much cash interest does this bond pay per year?

15) Referring to # 13, what will be the book value of the bond at the maturity date?

16) Referring to # 13, which interest rate will be used to calculate interest expense on the income statementthe stated rate of 5% or the market rate of 7%?