8. When a company sells bonds between interest dates they will pay which of the following at the first interest payment date? A. An amount less than the stated interest rate times the principal B. An amount more than the stated interest rate times the principal C. An amount equal to the stated interest rate times the principal D. The company may skip the first interest payment date since the appropriate time has not passed. 9. If a bond is issued at par and between intcrest dates: A. The cash received by the corporation will be less than the face value of the bond B. The cash received by the corporation will be greater than the face value of the bond C. The cash received by the corporation will be the same as the face value of the bond D. Interest receivable will be debited. 10. The term "junk bonds" describes bonds with: A. Low interest rates. B. Indefinite maturity dates. C. Low maturity values D. High risk. 11.Bonds which may be exchanged for a specified number of shares of capital stock are called A. Junk bonds B. Convertible bonds. C. Debenture bonds. D. Mortgage bonds 12. A bond that is not secured is also known as: A. A sinking fund. B. A mortgage. C. A debenture. D. A junk bond. 13. In relation to a bond issue, the role of the underwriter is to: A. Guarantee payment to bondholders of both the periodic interest payments and the maturity value. B. Purchase the entire bond issue from the issuing corporation and then sell the bonds to the public. C. Represent the intcrests of the bondholders and, if necessary, to take legal action on their behalf. D. Maintain a subsidiary ledger of individual bondholders and mail out the periodic interest checks On April 1, year l, Cricket Corporation issues$60milli n of 12%, 10-year bonds payable at par Interest on the bonds is payable semiannually each April 1 and October 1. 14. Refer to the information above. The amount of cash paid to bondholders for interest during Year 1, is A. $6,600,000. B. $5,400,000. C. $3,600,000. $1,800,000. 15. Refer to the information above. Interest expense on this bond issue reported in Cricket's Year I, income statement is: A. $2,400,000. B. $4,800,000. C. $5,400,000. D. $7,200,000 16. Refer to the information above. The adjustment necessary at December 31, Year I (if any), related to this bond issue involves: A. Recognition of interest expense of $3,600,000. B. Recognition of interest expense of $1,800,000 C. Payment of cash of $1,800,000. D. There is no adjustment necessary