PROBLEM III Circle TRUE or FALSE in each of the following The stated rate of interest is used to determine the cash interest on the bond payable TRUE FALSE 1) 2) Bond payable are long-term debts issued to multiple lenders called bondholders. TRUE FALSE 3) The amount the borrower must pay back to the bondholders on the maturity date is called the carrying value. TRUE FALSE 4) The interest rate that investors demand in order to loan their money is called the marke interest rate TRUE FALSE FALSE 5) Discount on Bond Payable is a contra account to Bond Payable. TRUE