a. Explain the term contingencies with examples, and the reporting procedures to report contingencies. (1 mark) (minimum 300 words) b. Explain how interest rates affect the price of bonds. (1 mark) c. Case: If Muscat company has bonds outstanding during a year in which market rate of interest has increase. If Muscat has elected fair value option for the bonds, will it report a gain or a loss on the bonds for the year. Explain. (1 mark) (b+s minimum 300 words)