A bond is sold at $98 of its face value ($100). Therefore, the bonds are: A) Sold at a discount because the stated rate of interest was lower than the effective (market) rate B) Sold for the $500,000 face amount less $10,000 of accrued interest. C) Sold at a premium because the stated rate of exceeds the effective (market) rate. D) Sold at a discount because the effective interest rate was lower than the stated (coupon) rate. OA OB oc OD Previous Company ABC, Co issued bonds at a premium and reports interest expense with the effective interest method. At e subsequent interest payment date, the cash interest paid is: A) Not Equal to the effective interest. B) Equal to the effective interest. C) Not Always the same dollar amount O A OB