1. ?Held-to-maturity investments applies only to debt securities because? ________.

A. equity securities do not mature on a specific date

B. these are? long-term investments

C. equity securities are held for a short period of time

D. these securities earn periodic interest

2. The Frozen Lake Company issues? $530,000 of? 9%, 10-year bonds at 105 on March? 31, 2017. The bond pays interest on March 31 and September 30. Assume that the company uses the? straight-line method for amortization. The journal entry to record the first interest payment on September? 30, 2017 includes a? ________. (Round your intermediate answers to the nearest? dollar.)

A. credit to Premium on Bonds Payable for? $1,325

B. debit to Interest Expense for? $22,525

C. debit to Interest Expense for? $25,175

D. debit to Cash for? $23,850

3. A bond is issued at premium? ________.

A. when a? bond's stated interest rate is higher than the market interest rate

B. when a? bond's stated interest rate is less than the market interest rate

C. when a? bond's stated interest rate is equal to the market interest rate

D. when a? bond's stated interest rate is less than the effective interest rate