(Please answer correctly ASAP)

Chapter 3 146 April 1 and 3. The interest payment dates of a bond issue are October 1, 20x1. The bonds were issued on August 31, 20x1. The interest expense for the year ended December 31, 20x1 would be for: a. four (4) months b. six (6) months c. seven (7) months d. ten (10) months 4. For a bond issue that sells for less than its par value, the market rate of interest is a. Dependent on rate stated on the bond. b. Equal to rate stated on the bond. c. Less than rate stated on the bond. d. Higher than rate stated on the bond. (AICPA) 5. The market price of a bond issued at a discount is the present value of its principal amount at the market (effective) rate of interest a. Less the present value of all future interest payments at the market (effective) rate of interest. b. Less the present value of all future interest payments the rate of interest stated on the bond. c. Plus the present value of all future interest payments at at the market (effective) rate of interest. d. Plus the present value of all future interest payments the rate of interest stated on the bond. at (AICPA)