mortization of discount on bonds payable is used, the 24. If the straight-line method of amortization of discount on bonus amount of yearly interest expense will decrease. A. True. B. False. 25. If the market rate of interest is 8%, the price of 6% bonds paying interest with a face value of $100,000 will be A. Less than $100,000. B. Greater than $100,000. C. Equal to $100,000. D. None of the above. 26. When the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium. A. True. B. False. 27. Discount on Bonds Payable would be reported on the balance sheet as a A. Fixed assets. B. Current assets. C. Current liabilities. D. Long-term Liabilities. 28. There is a gain on redemption of bonds when bonds are redeemed above carrying value, (A. True. B. False. 29. If a company borrows money from a bank as an installment note, the interest portion of each annual payment will: A. Equal the interest rate on the note times the face amount. B. Remain constant over the term of the note. C. Decrease over the term of the note. D. Increase over the term of the note. 30. Bondholders would like for the "number of times interest charges are earned" during the year to increase. A. True. B. False