8. T/F. Investment in securities like bonds are sold at a premium when th than the coupon rate on the date of the sale. as are sold at a premium when the market rate is lower 9. T/F. The two methods for amortization of premium or discount on bonds are method and the effective interest method. 10. T/F. When an investment in a debt security is transferred from the held-to- available for sale category, the unrealized holding gain or loss is computed and component of operating income. 11. T/F. Bonds that are secured by lien against specific assets of a company are known bonds. 12. T/F. Callable bonds are those that can be called by the issues at any time for a species 13. T/F. Convertible bonds are those that can be exchanged for a number of commons discount on bonds are the straight-line 055 is computed and reported as a company are known as mortgage specified time period. 14. On January 1, 2015, Ray Company issues bonds with a face value of $850.000 that pays97 Interest rate or coupon rate semi annually and it matures in 15 years. The market interest on the date of the sale. What is the issue price of the bonds? a. $850,000 b. $923,491.41 c. $815.386.52 d. $567,656.32 15. When the issuer of bonds exercises the option to retire the bonds, the excess of the cash paid over the carrying value of the bonds should be recognized separately as a(n): a. Expense b. Prior period adjustment C. Loss from continuous operations d. Loss from discontinued operations