QUESTION 1 American Manufacturing issued on January 1, 2011, $140,000 of 3%, 12 year bonds to raise funds to buy some special equipment. The bonds were sold to yield 4% return compounded semi-annually. The company uses the straight line method to amortize discounts and premiums. The Bond Contract states the bonds are being compounded semi-annually. What does that mean? That the bond interest will be calculated and paid every 6 months at 3% of the bond principle. That the bond interest will be calculated and paid every month at 0.25% of the bond principle. That the bond interest will be calculated and paid one time per year at 3% of the principle AThat the bond interest will be calculated and paid every 6 months at 1.5% of the principle. QUESTION 2 American Manufacturing issued on January 1, 2011, $140,000 of 3%, 12 year bonds to raise funds to buy some special equipment. The bonds were sold to yield 4% return compounded semi-annually. The company uses the straight line method to amortize discounts and premiums. How many interest payments will be paid out on this Bond Contract? O 12 payments O 6 payments O 24 payments O 18 payments