6. Able Electronics Company issues a $1,000,000,8%,20-year mortgage note on January 1 . The terms provide for annual installment payments, exclusive of real estate taxes and insurance, of $101,852. After the first installment payment, the principal balance is a. $1,000,000. b. $920,000. c. $978,148. d. $898,148. True / False: 1. T F Bondholders' claims on the assets of the corporation rank ahead of stockholders' claims. 2. TF If the bondholder has the right to exchange a bond for shares of common stock, the bond is called a convertible bond. 3. T F The amortization of a premium on bonds payable decreases bond interest expense. 4. T F If the amount of a bond premium on an issued 11%, four-year, $100,000 bond is $12,928, the semiannual straight-line amortization of the premium is $1,416. 5. TF Interest payments on 12% bonds with a face value of $20,000 and interest paid semiannually would be $2,400 every six months