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Which combination of True and False is correct? 1) A company is considering offering for sale one of two bond issues. The two bond issues

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Which combination of True and False is correct? 1) A company is considering offering for sale one of two bond issues. The two bond issues are equivalent except that one bond pays semi-annual interest while the other bond pays annual interest. The proceeds from the sale of the bond with semi-annual interest payments will be greater than the proceeds from the sale of the bonds with annual payments. 2) When interest rates have increased and bonds are retired before maturity, market value is below carrying value generating an accounting loss. Select one: OA. 1) True and 2) False O B. 1) False and 2) True O C. 1) False and 2) False o D. 1) True and 2) True

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