15. If the market rate of interest is 8%, a $50,000,7%, 20-year bond that pays interest semiannually would sell at an amount less than face value equal to the face value greater than face value d. that cannot be determined 16. Betsy Kline candle shop issues its 7%, 20 year bonds payable at a price of $746,720 (face value is $800,000). The company uses straight-line amortization method for the bond discount or premium. Interest expense for each year is (THE BOND PAYS ANNUALLY) 57,332 b. 56,000 c. 58,664 d. 59,270 17. On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000. The bonds are sold for $46,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $5,000 b. $5,200 c. $5,800 d. $5,400 18. Enron issued a $200,000 face value, 6% 10-year bond at 93. Which of the following is the correct journal entry to record the retirement of the bond at maturity? Bonds Payable 186,000 Cash 186,000 Cash 200,000 Bonds Payable 200,000 Bonds Payable 188,000 Cash 188,000 d. Bonds Payable 200,000 Cash 200,000 19. If bonds are issued at a premium, the stated interest rate is higher than the market rate of interest lower than the market rate of interest too low to attract investors adjusted to a higher rate of interest 20. A bond is quoted as a percentage of the market value the bond's face value redemption value d. none of the above