Answer the following true or false questions using the dropdowns provided.

a. When amortizing the discount on bonds payable, the amount of interest expense reported on the income statement will always be less than cash paid for interest.

b. The journal entry to record the sale of bonds at their face value results in an increase in assets and liabilities equal to the present value of the bonds' future cash flows.

c. A secured bond is a bond in which the issuer has the option to pay off the bond earlier.

d. PetPals issues a bond on January 1st, Year 1, when the market interest rate was 2%. On February 1st, Year 1, the market interest rate drops to 1%. True or False: The decrease in the interest rate on February 1st will not impact PetPal's accounting for the bond.

e. Interest expense on a bond is calculated by multiplying the bond's carrying value by the stated rate of interest.