Bonds and Long Term Notes Payable Paper 1

1

A bond issued and supported only by the general credit standing of the issuing corporation is called a(an):






2

Which of the following statements is not true?






3

Which is a disadvantage of bonds?






4

Which type of bond gives the issuing corporation the option of retiring the bond, at a predetermined price, prior to the maturity date of the bond?






5

Which is not true of bonds sold at a discount?






6

When $100,000 of 5% annual interest, 10-year bonds are sold at 98 (98.0%), the total interest expense on the bonds will be:






7

When $100,000 of 5% semiannual interest, 10-year bonds are sold at 98 (98.0%), the amount of periodic bond discount using the straight-line method of discount amortization will be:






8

$100,000 of 5% annual interest, 10-year bonds were sold at 98 (98.0%) when the market rate of interest was 6%. The amount of periodic bond discount using the effective interest method of discount amortization for the first annual interest period will be:






9

When $100,000 of 5% annual interest, 10-year bonds are sold at 103.5 (103.50%), the total interest expense on the bonds will be:






10

$100,000 of 8% annual interest, 10-year bonds were sold at 105.5 (105.50%) when the market rate of interest was 7%. The amount of periodic bond premium using the effective interest method of bond premium amortization for the first interest period will be:






Result

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