Kid Karate issued $100,000 of 6%, 10-year bonds when the market rate of interest was 5%. The proceeds from this bond issue were $107,000. Using the effective interest method of amortization, which of the following statements is true? Assume interest is paid annually.

Question 31 options:

	Interest payments to bondholders each period will be $5,000.
	Interest payments to bondholders each period will be $5,350.
	Amortization of the premium for the first interest period will be $5,000.
	Amortization of the premium for the first interest period will be $650.

Mortgage bonds are secure bonds.

Question 42 options:

	True
	False