14. The excess of a bond's issue price over its face value is known as the a. Discount b. Effective interest amount c. Coupon interest amount d. Premium e. None of the above 15. a. When the market interest rate is 10% and the coupon rate is 11%, a bond sells at: a discount b. a premium c. at par d. none of the above e. cannot be determined without more information 16. The spreading of the discount over the life of the bond is called discount amortization. a. True b. False 17. Which of the following would be classified as an operating activity on a statement of cash flows? a. purchase of inventory b. sale of another company's stock c. borrowing money through a promissory note d. payment of dividends e. purchase of a building