State whether each of the following statements is true or false. A disadvantage of issuing bonds is that it puts current shareholders at risk of losing full control of the 1 company. 2. 3. Financial leverage is when a company borrows at one rate and invests at a different rate. Bonds, like shares, may be bought by investors on organized securities exchanges. Convertible bonds are also known as callable bonds. The market rate is the rate investors demand for lending funds. C 5. Save for Later Attempts: 0 of 1 use Suby True False Wildhorse Corporation issued $3.54 million of 7- year, 6% bonds dated January 1, 2021, for $3,166,065. The market interest rate when the bonds were issued was 8%. Interest is payable semi-annually on January 1 and July 1. Wildhorse has a December 31 year end. Prepare an amortization schedule for the first three interest payments. (Round answers to O decimal places, e.g. 5,276.) WILDHORSE CORPORATION Bond Amortization Table Effective Interest Method-Semi-Annual Interest Payments 6% Bonds Issued at market rate of 8% Interest Payment Interest Expense Discount Amortization Bond Amortized Cost $