Use the following information to answer questions 7 and 8. G ehf issued bonds with a face value of ISK 10,000 on 1 January 2012. The interest rate on the bond was 6%. The bond was for 5 years and was sold at a price of 95. Interest must be paid on 31 December each year. 6. What is the book value e. bond guarantee on 31 December 2014 in the company's balance sheet? A). kr 9,500 B). kr 9800 C). kr 9900 D). kr 10,000

7. What are the total interest expenses charged to the income statement in 2013? A). 600 kr B). 700 kr C). 800 kr D). 900 kr