Balance sheet and income statement data indicate the following: Based on the data presented above, what is the number of times bond interest charges were earned (it und to two decimal places)? THINK about where you could calculate interest expense!! 5.67 4.33 3.24 3.50 On January 1, 2011, Gemstone Company obtained a $280,000, 10-year. 11% installment note from Guarantee Bank. The note requires annual payments of $47, 544, with the first payment occurring on th last day of the fiscal year. The first payment consists of interest of $30, 800 and principal repayment of $16, 744. The journal entry to record the payment of the first annual amount due on the note would include: a credit to cash of $16, 744 a credit to Interest Payable of $30, 800 a debit to Notes Payable of $16, 744 a debit to Interest Expense of $47, 544 The interest rate specified in the bond indenture is called the discount rate contract rate market rate effective rate If bonds are issued at a discount, it means that the bondholder will receive effectively less interest than the contractual rate of interest. market interest rate is lower than the contractual interest rate. market interest rate is higher than the contractual interest rate. financial strength of the issuer is suspect