01 Practice Test #4 Choice The choice that best completes the statement or answers the question 1. When the market rate of interest on bonds is higher than the contract (face) rate, the bonds will sell at: a a premium b. their face value c. their maturity value da discount On February 1, Stuart Co, issued $1,300,000 of 20-year, 9% bonds, dated February 1. for $1.225.000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year: a) (b) Issuance of the bonds. Payment of first semiannual interest on August 1, including the amortization of the premium or discount. O ne 30, 2018 Athens Company issued $1,500,000 of 10-year, 8% bonds, dated June 30, for $1.540,000 o d the following transactions