1.If a bond sells at a premium,

(A)interest expense can not be calculated.

(B)cash interest will equal interest expense each period.

(C)interest expense exceeds cash interest each period.

(D)cash interest exceeds interest expense each period.

2.

A bond will sell at a discount when

(A)the stated rate is less than the market rate

(B)the stated rate is more than the market rate

(C)interest rates fall

(D)the company's stock price goes down