The premium on a bond is and each period. Multiple Choice depreciated; increases increased;...

Question

Question

The premium on a bond is ________ and ________ each period.

Multiple Choice

Answer 1

Answer #1

Option C is the answer

A bond is said to be issued at premium when the issue price is higher than face value of bond

The premium on bond is amortized each year and it decreases each period.

Answer 2

Similar Homework Help Questions

Help Save & Exit An amortization schedule for a bond issued at a premium: Multiple Choice...

Help Save & Exit An amortization schedule for a bond issued at a premium: Multiple Choice Has a carrying value that increases over time o Is contained in the balance sheet o () is a schedule that reflects the changes in the carry e bond over its term to maturity ) All of the other answer choices are correct Prev 5 of 30 !! Next > Help Save Which of the following statements is correct? Multiple Choice O Bonds are...
When a bond sells at a premium Multiple Choice The contract rate is above the market...

When a bond sells at a premium Multiple Choice The contract rate is above the market rate The contract rate is equal to the market rate The contract rate is below the market rate It means that the bond is a zero coupon bond. The bond pays no interest.
When a company accrues salaries at the end of the accounting period: Multiple Choice A. Its...

When a company accrues salaries at the end of the accounting period: Multiple Choice A. Its acid-test ratio increases. B. Its current ratio increases. C. Its debt to equity ratio decreases. D. Its debt to equity ratio increases.

If the Federal funds rate Multiple Choice increases, the prime interest rate will increase. increases, the...

If the Federal funds rate Multiple Choice increases, the prime interest rate will increase. increases, the prime interest rate will decrease. decreases, the prime interest rate will not change. decreases, the prime interest rate will increase.
If the times interest earned ratio: Multiple Choice Increases, then risk increases. Increases, then risk decreases....

If the times interest earned ratio: Multiple Choice Increases, then risk increases. Increases, then risk decreases. Is greater than 1.5, the company is in default. Is less than 1.5, the company is carrying too little debt.
When the effective interest method is used, the amortization of the bond premium 0 has no...

When the effective interest method is used, the amortization of the bond premium 0 has no effect on the interest expense in any period O decreases interest expense each period Oincreases interest expense each period 0 increases interest expense in some periods and decreases interest expense in other periods

Which of the following is NOT true regarding intangibles? Multiple Choice Goodwill is amortized over its...

Which of the following is NOT true regarding intangibles? Multiple Choice Goodwill is amortized over its useful life An intangible with a definite life is amortized over the lessor of legal or useful life. Research and Development is expensed right away Intangibles that are developed internally and immaterial in amount may be expensed rather than amortized
The duration of a coupon bond is: Multiple Choice Ο equal to its number of payments....

The duration of a coupon bond is: Multiple Choice Ο equal to its number of payments. Ο less than that of a zero coupon bond of equal maturity. less than that of a Ο equal to the zero coupon bond of the same maturity. Ο equal to its maturity. Ο increases as the time to maturity decreases. Assume a bond matures in 2 years, has a coupon rate of 6 percent, pays interest annually, and has a face value of...
Land improvements are: Multiple Choice O C ) Also called basket purchases O o Assets that...

Land improvements are: Multiple Choice O C ) Also called basket purchases O o Assets that increase the usefulness of land, and like land, are not depreciated O Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation O Expensed in the period incurred

Which account is most unlikely to be credited when an expense is recorded? Multiple Choice O...

Which account is most unlikely to be credited when an expense is recorded? Multiple Choice O O Cash O O Accounts Payable Accounts Receivable An account with the word "Prepaid" in its title A prepayment of rent for the next three months (not including this month): Multiple Choice decreases stockholders' equity. O increases expenses a has no effect on total assets. reduces total assets.

The premium on a bond is ________ and ________ each period. Multiple Choice depreciated; increases increased;...