A company issues 9%, 4-year bonds with a par value of $160,000 on January 1 at a price of $165,386, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

Multiple Choice

• $14,400.

• $0.

• $12,800.

• $7,200.

• $6,400

  2) A company issued 5-year, 5% bonds with a par value of $91,000. The company received $88,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

  Multiple Choice

• $2,069.70.

• $2,275.00.

• $2,480.30.

• $4,960.60.

• $4,550.00.

  3) A company issued 5-year, 7% bonds with a par value of $500,000. The market rate when the bonds were issued was 6.5%. The company received $505,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

  Multiple Choice

• $17,000.

• $18,000.

• $35,000.

• $34,500.

• $17,500.