On January 1 Year 1 Strang Incorporated issued bonds with a face value of 500 000 a stated rate of interest of 8 and a 5 year term to maturity The effective rate of Interest was 10 Interest is payable in cash on June and December 31 of each year Which of the following statements is true Multiple Choice This bond was issued at a premium and each semiannual cash payment is 25 000 This bond was issued at a discount and each semiannual cash payment is 20 000 This bond was issued at a discount and the annual Interest expense is 40 000 This bond was issued at a premium and the annual Interest expense is 40 000