8 A company issued 5-year, 7% bonds with a par value of $100.000. The company received $97.947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is A) 53,705.30 B) $3.294.70 C) $7.000.00 D) $7,410.60. 9 Amortizing a bond discount A) decreases the Bonds Payable account. B) decreases interest expense each period. C) increases the market value of the Bonds Payable. D) allocates a part of the total discount to each interest period. 10. The debt ratio is used primarily as a measure of A) short-term liquidity B) profitability C) return on investment. D) creditors' long-term risk. End of Section A