True or false 1. The semi-annual interest payment on a 7% HK$10,000,000 bond is HK$700,000.- 2. If preference shares are cumulative and no dividends are declared, the company subtracts the current year preference dividend in computing earnings per share." 3. When a zero-interest bearing note is issued, the note payable account will be credited for the present value of the maturity value. 4. Companies recognize a gain or loss when shareholders redeem convertible preference shares. 5. If an employee fails to exercise a share option before its expiration date, the company should decrease compensation expense