On April 1st this week you take out a $50,000 loan to then buy a 3-year bond with a face value of $50,000 and stated rate of 7% which makes interest payments bi-monthly (twice a month). The market rate of interest on April 1st is 7.5%.

A) In April you have to record the interest revenue on the bond you purchased. You now how to record the interest receivable amount.

B) Accrued interest on original long-term loan and note payable or accrued interest revenue on note receivable. The $50,000 loan in week 11 has a 5% annual interest rate.