1. Which one of the following 6-year bonds with a maturity value of $37,000 would generate the highest proceeds upon issuance? Select one:

A. A bond with a stated interest rate of 8% and a prevailing market rate of 8%

B. A bond with a stated interest rate of 7% and a prevailing market rate of 9%

C. A bond with a stated interest rate of 6% and a prevailing market rate of 6%

D. A bond with a stated interest

2) At what value are held-to-maturity debt securities reported on the Balance Sheet? Select one:

A. Acquisition cost

B. Historical cost adjusted for a proportionate share of the affiliates earnings, and losses. And dividends.

C. Amortized cost

D. Market value