true or false

1. THE PRINCIPAL AMOUNT OF A BOND IS THE AMOUNT THAT A COMPANY HAS BORROWED FROM THE BONDHOLDER 2, A BOND SELLING AT 98 IS SELLING AT A PREMIUM. 3. IF THE CONTRACT INTEREST RATE IS HIGHER THAN THE MARKET INTEREST RATE, THE BONDS WILL SELL AT A PREMIUM 4. WHEN A BO ND IS ISSUED AT A DISCOUNT, THE DISCOUNT HAS THE EFFECT OF RAISING THE INTEREST EXPENSE ON THE BONDS TO THE MARKET RATE OF INTEREST S. PREMIUM ON BONDS PAYABLE IS A CONTRA ACCOUNT TO BONDS PAYABLE AND IS DEDUCTUED TO SHOW THE BOOK VALUE OF THE BONDS 6. THE PREMIUM ON BONDS PAYABLE ACCOUNT IS AMORTIZED BY A DEBIT TO INTEREST EXPNSE AND A CREDIT TO PREMIUM ON BONDS PAYABLE 7, THE PRESENT VALUE OF $1,000 DUE IN 2 YEARS AT 7% INTEREST IS $909 8. ISSUING BONDS INSTEAD OF STOCK GENERALLY RESULTS IN HIGHER EARNINGS PER SHARE BECAUSE INTEREST EXPENSE IS TAX DEDUCTIBLE AND OWNERSHIP IS NOT DILUTED 9.THE EFFECTIV-INTEREST METHOD OF AMORTIZATION KEEPS EACH INTEREST EXPENSE AMOUNT AT THE SAME PERCENTAGE OF THE BOND'S CARRYING VALUE FOR EVERY INTEREST PAYMENT OVER THE BOND'S LIFE