Seaside issues a bond that has a stated interest rate of 13%, face amount of $50,000, and is due in 6 years. Interest payments are made semi-annually. The market rate for this type of bond is 16%. What is the issue price of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice A $69,856. B $44,348. C $77,916. D.$50,000.

Cramer Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was $135,000, while the issue price was $144,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2021, income statement (assume straight-line amortization)? (Do not round intermediate calculations.)

Multiple Choice

• $2,880.

• $1,800.

• $2,250.

• $2,700.