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Question 1: On December 1, a company signed a $6,000, 90-day, 5% note payable, with principal plus interest due on March 1 of the following year. What amount of interest expense should be accrued at December 31 on the note?
a. $300
b. $100
c. $0
d. $25
e. $75
Question 2: A bondholder that owns a $1,000, 6%, 15-year bond has
a. The right to receive $1,000 at maturity.
b. The right to receive $60 per month until maturity.
c. The right to receive $1,900 at maturity.
d. The right to receive $600 per year until maturity.
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