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Question 9 (1 point) A company issues $500,000 8% bonds due in 10 years for $515,000. Which of the following is true? The bonds were
Question 9 (1 point) A company issues $500,000 8% bonds due in 10 years for $515,000. Which of the following is true? The bonds were issued at a discount The bonds were issued at a premium The market rate of interest must be lower than 8%, so investors are willing to pay more than full price for our bonds Both b and c Question 10 (1 point) If a company issues $500,0O00, 6% bonds for $490,000, the entry to record the issuance of the bonds will include a Debit to cash for $490,000 Credit to bonds payable for $490,000 Debit to interest expense for $10,000 Credit to discount on bonds payable for $10,000
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