____8. Which of the following is NOT a characteristic of bonds? A- Secured bonds B-Coupon bonds...
____8. Which of the following is NOT a characteristic of bonds?
A- Secured bonds
B-Coupon bonds
C-Variable bonds
D-Serial bonds
E-All of these
9. The total interest expense associated with a bond issue is the sum of the actual interest payments:
A-Plus any related bond discount
B-Plus any related bond premium
C-Minus any related bond discount
D-Minus any related bond premium
E-Both A and D
10. The amount at which bonds payable should be shown on the balance sheet is their face value:
A-Plus any related un-amortized bond discount
B-Minus any related un-amortized bond discount
C-Plus any related un-amortized bond premium
D-Minus any related un-amortized bond premium
E-Both A and C
Homework Answers
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____8. Which of the following is NOT a characteristic of
bonds?
A- Secured bonds
B-Coupon bonds...
Question 19 4 pts When a note is secured by an asset of the corporation, it...
Question 19 4 pts When a note is secured by an asset of the corporation, it is called ain) O mortgage. O asset note. callable note O serial bond. Question 18 4 pts Rawl Company issues a 10-year, $4,000,000 bond on 01/01/2019 with a premium of $100,000. The coupon rate of the bond is 10%, and interest is to be paid to the bondholders semiannually on 06/30 and 12/31. The journal entry that Rawl should make on 12/31/2019 with regard...
Determine the price of the following bonds. Please show your work. a. Duration: 2 years Coupon...
Determine the price of the following bonds. Please show your work. a. Duration: 2 years Coupon Rate: 3% Face Value: $500 Discount Rate: 3.25% whats the Price: _______________ . This bond is selling at a : PREMIUM or DISCOUNT b. Duration: 3 years Coupon Rate: 3% Face Value: $500 Discount Rate: 2.75% whats the Price: __________________ ? c This bond is selling at a : PREMIUM or DISCOUNT (pick one) d. A $1,000, 10-year Treasury bond with a yearly coupon...
9.Which of the following statements is FALSE? A. Most coupon bond issuers choose a coupon rate...
9.Which of the following statements is FALSE? A. Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very near to, par. B. If the bond trades at a discount, and investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond. C. At any point in time, changes in market interest rates affect a bond's...
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events...
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events with uncertain outcomes that may represent potential liabilities. d. Bonds that can be converted into common stock at the bondholder's option Unsecured bonds e. A legal document that indicates the name of the issuer, the face value of the bonds, and other data such as the contractual interest rate and the maturity date of the bonds. [ Bonds that the issuing company can redeem...
my question is Q 29, zero coupon bonds ( part b and c continue on next...
my question is Q 29, zero coupon bonds ( part b and c continue
on next page), thank you so much !
IOU (OU) 5.7 Apr 19, 2028 108.96 ?? 1.827 27. Bond Prices versus Yields [LO2) a. What is the relationship between the price of a bond and its YTM? b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon...
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity....
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity. A. call D. capitalization 7. The thavalue of a bond is also called its face value. Bonds which sell at less face value are priced at awhile bonds which sell at greater than face value sell at a A. discount; par, premium B. premium; discount; par C par discount; premium D. coupon; premium; discount 8. If you invest $178,571 in a project that generates...
Diaz Company issued $84,000 face value of bonds on January 1, 2018. The bonds had a...
Diaz Company issued $84,000 face value of bonds on January 1, 2018. The bonds had a 8 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 98. The straight-line method is used for amortization. Required Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense,...
1)The principal amount of a bond that is repaid at the end of the loan term...
1)The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon. B) face value. C) maturity. D) yield to maturity. E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1,000 in the market is called a bond. A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays interest...
1) The principal amount of a bond that is repaid at the end of the loan...
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
Could you plz help me those questions? I literally struggled.. QUESTION 1 Which of the following...
Could you plz help me those questions? I literally struggled.. QUESTION 1 Which of the following is true regarding current portion of long-term debt? a. is reported separately on the balance sheet, but not in the general ledger b. is listed on the balance sheet as a current liability c. it is the part of the liability amount that is expected to be paid within the next year d. all are true 1 points QUESTION 2 Where on the...
Question 19 4 pts When a note is secured by an asset of the corporation, it is called ain) O mortgage. O asset note. callable note O serial bond. Question 18 4 pts Rawl Company issues a 10-year, $4,000,000 bond on 01/01/2019 with a premium of $100,000. The coupon rate of the bond is 10%, and interest is to be paid to the bondholders semiannually on 06/30 and 12/31. The journal entry that Rawl should make on 12/31/2019 with regard...
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events with uncertain outcomes that may represent potential liabilities. d. Bonds that can be converted into common stock at the bondholder's option Unsecured bonds e. A legal document that indicates the name of the issuer, the face value of the bonds, and other data such as the contractual interest rate and the maturity date of the bonds. [ Bonds that the issuing company can redeem...
my question is Q 29, zero coupon bonds ( part b and c continue
on next page), thank you so much !
IOU (OU) 5.7 Apr 19, 2028 108.96 ?? 1.827 27. Bond Prices versus Yields [LO2) a. What is the relationship between the price of a bond and its YTM? b. Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon...
6. The feature permits the issuer to repurchase bonds at a stated price prior to maturity. A. call D. capitalization 7. The thavalue of a bond is also called its face value. Bonds which sell at less face value are priced at awhile bonds which sell at greater than face value sell at a A. discount; par, premium B. premium; discount; par C par discount; premium D. coupon; premium; discount 8. If you invest $178,571 in a project that generates...
1)The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon. B) face value. C) maturity. D) yield to maturity. E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1,000 in the market is called a bond. A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays interest...
1) The principal amount of a bond that is repaid at the end of the loan term is called the bond's: A) coupon B) face value. C) maturity D) yield to maturity E) coupon rate. 2) A bond with a face value of $1,000 that sells for $1.000 in the market is called a bond A) par value B) discount C) premium D) zero coupon E) floating rate 3) A bond with a coupon rate of 6 percent that pays...
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