Answer the following true or false questions using the dropdowns provided.$$

$1.$ When amortizing the discount on bonds payable, the amount of interest expense reported on the income statement will always be less than cash paid for interest. $[$ Select $]["$True$",$ "False"$]$

$2.$ The journal entry to record the sale of bonds at their face value results in an increase in assets and liabilities equal to the present value of the bonds' future cash flows. $[$ Select $]["$True$",$ "False"$]$

$3.$ A secured bond is a bond in which the issuer has the option to pay off the bond earlier. $[$ Select $]["$True$",$ "False"$]$

$4.$ PetPals issues a bond on January $1$st$,$ Year $1,$ when the market interest rate was $2\%.$ On February $1$st$,$ Year $1,$ the market interest rate drops to $1\%.$ True or False: The decrease in the interest rate on February $1$st will not impact PetPal's accounting for the bond. $[$ Select $]["$True$",$ "False"$]$

$5.$ Interest expense on a bond is calculated by multiplying the bond's carrying value by the stated rate of interest. $[$ Select $]["$True$",$ "False"$]$

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Use the following information for all questions related to McGill College.

McGill would like to build a new gym for its campus and decides to issue bonds in order to raise money. On January $1$st$,$ Year $1,$ McGill issues a four$-$year, $$10,000$ face value bond with a $6\%$ stated annual interest rate. Interest is payable semi$-$annually on the last day of June and the last day of December. The market annual interest rate is $8\%.$