5. On April 1, the market rate of interest was 8.5% and a company issued $100,000 of 8%, 10 year bonds at 99. If the company uses the straight-line method to amortize the bond discount, the semiannual amortization amount is a. $50 b. $207.50 c. $1,000 d. $4,207.50 9. a. When a bond is sold on April 1 and interest payments are Jan. 1 and July 1, the amount of cash received when the bond is issued will be decreased by interest accrued from April 1 to July 1 b. decreased by interest accrued from Jan. 1 to April 1 increased by interest accrued from April 1 to July 1 d. increased by interest accrued from Jan. 1 to April 1 C. 10. a. A bond may be retired by purchasing the bonds on the stock market b. converting the bonds into common stock if the bonds are convertible calling the bonds into the company for face value d. declaring the bonds retired c