3. The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2014. The total interest expense related to these bonds for the year ended December 31, 2010 is a $1,000 b. $3.000 C. $9.000 d. 12.000 4. When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a$321,970 b. $1,000,000 c. $ 943,494 d. $621,524 5. When the market rate of interest was 11%, Munson Corporation issued $1,000,000, 12%, 8-year bonds that pay interest semiannually. The selling price of this bond issue was a $1,052,310 b. $1,154,387 c. $1,000,000 d. $720,495 6. If bonds are issued at a premium, the stated interest rate is a higher than the market rate of interest. b. lower than the market rate of interest too low to attract investors. d. adjusted to a higher rate of interest. 7. If bonds are issued at a discount, it means that the a. bondholder will receive effectively less interest than the contractual rate of interest. b. market interest rate is lower than the contractual interest rate. market interest rate is higher than the contractual interest rate. d. financial strength of the issuer is suspect. C. C