5. If this bond is now selling at 98, the market rate of interest has decreased. A. True B. False C. Cannot be determined 6. On January 1, 2015, Aggie issued $200,000 of 9%, five year bonds payable for $225,570. At issue the market rate of interest was 6%. Aggie has extra cash and \"shes to retire the bonds payable on January 1, 2016, immediately after making the second semiannual interest payment. Tb retire the bonds, Aggie pays the market price of 96. Aggie uses the effective interest method to amortize bond discount or premium. How much is Aggies gain or loss on the early retirement? A. $20,196 loss B. $37,969 gain c. $33,537 gain D. $29,037 gain E. $12,196 loss 7. Answer the following as true or false and then select the correct multiplechoice answer. It: nd the carrying value of a bond issued at a discount, subtract the amortized discount from the face value of the bond. For a bond issued at a premium, the cash interest payment will decrease over the life of the bond. The carrying value of a bond issued at face value will not change over the life of the bond. True, 'fi'ue, True False, False, False False, False, True Ttue, False, 'Itue True, Title, False some? 8. A company issues a $150,000, six-year 6% bond on January 1, 2015. interest is payable semi-annually. The market rate of interest is 4%. Find the selling price of the bond. A. $1 50,000 B. 151 66, 088 C. $165, 678 D. $1 42,089 E. $1 65 _ 788