Acct 2301 Practice Test #4 Multiple Choice Identify the choice that best completes the statement or answers the question. When the market rate of interest on bonds is higher than the contract (face) rate, the bonds will sell at: a. 1. a premium their face value their maturity value a discount b. c. d. Problem On February 1, Stuart Co. issued S 1,300,000 of 20-year, 9% bonds, dated February 1, fr S 1,225,000. Interest is payable semiannually on February 1 and August 1. transactions for the current year: 2. Present the entries to record the following Issuance of the bonds. Payment of first semiannual interest on August 1, including the amortization of the premium or discount. (a) (b)