When bonds are first issued, the liability is entered in the Bonds Payable account at the bond's

a.face value plus accrued interest.

b.face value.

c.issuance price when that amount is greater or less than face value.

d.face value plus any discount.

If the market rate of interest is 12 percent and a company is issuing long-term bonds paying 10 percent, at what percent would those liabilities have to be discounted, assuming semiannual compounding?

a.12 percent

b.6 percent

c.10 percent

d.5 percent