Question 1 When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a. $321,970 b. $621,524 c. $943,494 d. $1,000,000 5 points Question 4 The Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $800,000 and pay interest every January 1 and July 1. The bonds were sold for $690,960 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1, of the first year, Designer should record interest expense (round to the nearest dollar) of a. $27,638 b. $24,000 c. $48,000 d. $55,277 5 points Question 8 When the effective interest method is used, the amortization of the bond premium a. increases interest expense each period b. decreases interest expense each period c. has no effect on the interest expense in any period d. increases interest expense in some periods and decreases interest expense in other periods