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The following investments were made by the Farrence Company. a. Purchased a $1,000, 5%, 10-year bond...

The following investments were made by the Farrence Company. a. Purchased a $1,000, 5%, 10-year bond at 102 b. Purchased a $5,000, 6½%, 10-year bond at 98 Assume that both investments were made on the date the bonds were originally issued, and that the bonds were held to maturity. Total income earned by the Farrence Company for the bond in b is A. $500. C. $3,350. B. $3,250. D. $4,900. The amount of interest income to be reported annually for the bond in a is A. $48. C. $335. B. $50. D. $480.

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