On January 1, Di Corporation issued $1,000,000 14%, 5-year bonds with interest payable on July 1 and January 1. The bonds sold for $1,098,540. The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for

a. $60,000

b. $76, 898

c. $65,912

d. $131,825

If the market rate of interest is 10.2%, and the coupon rate (stated interest rate) of a 10-year bond issued by Performance Company is 10.8%, the bond will be sold

a. at a discoutn

b. at a premium

c. at face value

d. cannot be determine