If bonds are issued at a premium, the stated interest rate is too low to attract investors. higher than the market rate of interest. lower than the market rate of interest. adjusted to a higher rate of interest. Over the term of the bonds, the balance in the Discount on Bonds Payable account will decrease. increase be unaffected until the bonds mature. fluctuate up and down if the market is volatile. A measure of a company's solvency is the Choice 794 Choice 7100 Choice 106 Choice n 179 Choice 194 Choice 215 asset turnover ratio. times interest earned. acid-test ratio. current ratio. Choice n 69 Cullumber Company purchased a building on January 2 by signing a long-term $4164000 mortgage with monthly payments of $35200. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be $4160500. $4125800 $4129300 $4164000