QUESTION 5 You want to buy an Adele Company 8%, $100,000 bond. The bond pays interest annually. The bond currently has exactly four years to maturity. Figure out the value of the bond when current interest rates are 10%. O A $108,424.73 O B. $93,660.27 OC. $92,418.43 OD. $62,092.13 O E. $100,000 QUESTION 6 Assume that a company issues a ten-year $100,000, 6% bond to yield 8% for $86,579.84 on January 1, 2014 and interest payments are due on December 31st of each year. On December 31, 2014 the company paid the bondholder the annual payment of $6,000. The journal entry to record the first payment on December 31, 2014 will include: O A. a credit to bond discount $ 926.39 O B. a debit to bond discount of $ 926.39 C.a debit to interest expense of $ 6,000 D.a credit to bond premium of $ 926.39 O E. a debit to interest expense of $ 8,000 QUESTION 7 Wilma issued a 10-year, $100,000 face, 10% coupon rate bond to yield 10%. This bond was issued at: A premium B. par OC. discount OD.coupon QUESTION 8 When a business issues bonds for cash, which of the following occurs? O A. An expense account increases and an asset account decreases B. An asset account increases and a liability account increases O C. An asset account increases and a liability account decreases O D.An asset account decreases and a liability account increases O E. A revenue account increases and an asset account increases