when the maturities of a bond issue are spread over several dates, the bonds are called 0 a. debenture bands 0 b. term bands 0 c. serial bands 0 d. bearer bands A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%. The straight-line method is adopted for the amortization of bond discount or premium. Which of the following statements is true? Oa. The bonds will be issued at a premium. Ob. The amount of the annual interest expense gradually decreases over the life of the bonds. Oc. The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity. Od. The amount of the annual interest expense is computed at 10% of the bond carrying amount at the beginning of the year.Selling the bonds at a premium has the effect of Ca. attracting investors that are willing to pay a lower rate of interest than on similar bonds Ob. raising the effective interest rate above the stated interest rate Oc. causing the interest expense to be lower than the bond interest paid Od. causing the interest expense to be higher than the bond interest paidOn January 1, the Elias Corporation issued 10% bonds with a face value of $96,000. The bonds are sold for $94,080. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is. Oa. $1,920 Ob. $9,408 Oc. $9,792 Od. $9,600The interest rate specified in the bond indenture is called the Oa. contract rate Ob. effective rate Oc. discount rate Od. market rate