Which of the following describes what happens when bonds are issued when the market interest rate is less than the stated interest rate? Multiple Choice The bonds are issued at a premium. The bonds are issued at less than their face value. o It raises the effectiv It raises the effective interest rate above the stated rate of interest. o o The bands are su The bonds are issued at a premium and the effective interest rate is higher than the stated rate. Kier Company issued $200,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 4-year term to maturity. The bonds have a 6.5% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice $13,000 and Zero O Zero and $13,000 0 $13,000 and $13,000 0 Zero and Zero