DUE: Nov 15, 2019 1. How many interest payment periods are in an 8-year, 8% bond with an effective interest rate of 6%, and paid semiannually? A) 3 B) 8 C) 12 D) 16 2. On May 1, ABC Co. borrowed $50,000 on a 6-month, 10% note. The accounting period ends at Dec. 31. What are the effects of the payment at maturity? a. Liabilities are decreased by $50,000 b. Expenses are increased by $2,500 c. Total assets are decreased by $52,500 d. Liabilities are increased by $50,000 A) a, c, and d B) a, b, and c C) b, c, and d D) a, b, c, and d 3. If bonds are issued at 97, which of the following is not correct: A) A $1,000 bond sold for $970. B) The bonds sold at a discount. C) A $2,000 bond sold for $1,940. D) The bond rate of interest is 9.7% of the market rate of interest. nited States)