X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Decrease in Carrying Value Interest Expense Cash Paid Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $8,320 8,320 8,320 8,320 $7,578 7,527 7,471 7,412 $ 742 793 849 908 972 Carrying Value $ 108,264 107,522 106,729 105,880 104,972 104,000 8,320 7,348 What is the annual stated interest rate on the bonds? Multiple Choice o 3.5% O 4% 7% 89. X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Decrease in Carrying Interest Expense Cash Paid Value Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $8,320 8,320 8,320 8,320 8,320 $7,578 7,527 7,471 7,412 7,348 $ 742 793 849 908 972 Carrying Value $ 108,264 107,522 106,729 105,880 104,972 104,000 What is the annual market interest rate on the bonds? Multiple Choice 3.5% 4%. 7% 8%. Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Interest Expense Cash Paid Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $8,400 8,400 8,400 8,400 8,400 8,400 $ 9,967 10,045 10,128 10,214 10,305 10,480 $1,567 1,645 1,728 1,814 1,905 2,000 Carrying Value $ 199,341 200,908 202,553 204, 281 206,095 208,000 210,000 THA buys back the bonds for $200.693 immediately after the interest payment on 12/31/2021 and retires them. What gain or loss, if any, would THA record on this date? Multiple Choice $1,352 loss. O $1,860 gain $9.307 gain C No gain or loss. O A bond issue with a face amount of $500.000 bears interest at the rate of 7%. The current market rate of interest is 8%. These bonds will sell at a price that is: Multiple Choice Less than $500,000 Equal to $500,000 More than $500,000 O The answer cannot be determined from the Information provided