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pls answer both questions 58) On January 1, Year 1. Wayne Company issued bonds with a face value of $600.000, a 6% stated rate of
pls answer both questions
58) On January 1, Year 1. Wayne Company issued bonds with a face value of $600.000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Which of the following statements is true if Wayne issued the bonds at 96 ? A) The market rate of interest was equal to the stated rate of interest. B) The market rate of interest was lower than the stated rate of interest. C) The market rate of interest was higher than the stated rate of interest. D) The bonds carried a variable interest rate that changed in response to market conditions. 59) On January 1, Year I Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 . The bonds had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the bond liability on January 1 , Year I (just after issuance) is: A) $52,000. C) $48,000. B) $50,000. D) $46,500 Step by Step Solution
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