Which of the following statements concerning bonds is true?A.) primarily, bonds are issued in denomicountries of $100B.) as soon as an issuing company"s bonds are traded in the "secondary" market, the agency will get part of the proceeds once the bonds are offered from the initially purchaser to the second purchaserC.) the whole principal amount of many bonds mature on a single dateD.) a debenture bond is backed by the particular assets of the issuing company


You are watching: Bonds are a popular source of financing because

Bonds are sold at a premium if theA.) industry rate of interest was even more than the declared rate at the time of issueB.) market price of interest was much less than the stated rate at the moment of issueC.) firm will need to pay a premium to retire the bondsD.) issuing agency has a much better reputation than other companies in the same business
If bonds are issued at 101.25, this means thatA.) a $1,000 bond offered for $1,012.50B.) a $1,000 bond sold for $101.25C.) the bonds sold at a discountD.) the bond price of interest is 10.125% of the market rate of interest
What finest defines the discount on bonds payable account?A.) a liabilityB.) an assetC.) a contra liabilityD.) an expense
The premium on bonds payable account is shown on the balance sheet as?A.) a contra assetB.) a reduction of an expenseC.) an enhancement to a permanent liabilityD.) a subtraction from a permanent liability
When bonds are issued by a firm, the bookkeeping enattempt frequently mirrors an?A.) increase in liabilities and a decrease in stockholders" equityB.) boost in assets and a boost in stockholders" equityC.) rise in liabilities and an increase in stockholders" equityD.) rise in assets and also a rise in liabilities
Bower Company kind of marketed $100,000 of 20-year bonds for $95,000. The stated rate on the bonds was 7%, and interemainder is phelp each year on December 31. What enattempt would be made on December 31 once the interest is paid? (numbers are omitted)A.) Dr: interest expense Cr: cashB.) Dr: interest expense Cr: bonds payable Cr: cashC.) Dr: interest expense Dr: discount on bonds payable Cr: cashD.) Dr: interest cost Cr: discount on bonds payable Cr: cash
Bonds in the amount of $100,000 with a life of 10 years were issued by the Roundy Company. If the proclaimed price is 6% and also interest is paid semiannually, what would be the total amount of interemainder paid over the life of the bonds?A.) $120,000B.) $60,000C.) $30,000D.) $6,000
Sean Corp. issued a $40,000, 10-year bond, with a proclaimed price of 8%, passist semieach year. How much cash will the bond investors get at the end of the initially interemainder period?A.) $800B.) $1,600C.) $3,200D.) $4,000
When bonds are issued at a discount, the interemainder expense for the period is the amount of interemainder payment for the periodA.) plus the premium amortization for the periodB.) minus the premium amortization for the periodC.) plus the discount amortization for the periodD.) minus the discount amortization for the period
When bonds are issued at a premium, the interest expense for the period is the amount of interemainder payment for the periodA.) minus the premium amortization for the periodB.) plus the premium amortization for the periodC.) plus the discount amortization for the periodD.) minus the discount amortization for the period
Installment bonds differ from typical bonds in what way?A.) basically they are the sameB.) the entire major balance is phelp off at maturity for installment bondsC.) installment bonds do not have actually a declared rateD.) a portion of each installment bond payment pays down the principal balance
Bonds are a famous source of financing because?A.) a agency having actually cash circulation problems have the right to postpone payment of interemainder to bondholdersB.) financial analysts tfinish to downgrade a agency that has increased large quantities of cash by constant concerns of stockC.) bond interest expense is deductible for taxes purposes, while dividends paid on stock are notD.) the bondholders deserve to always transform their bonds into stock if they choose
a bond problem that is structured so that a part of the exceptional bonds mature at continuous intervals until every one of the bonds have matured
})}else;window.location.assign("https://steustatiushistory.org/explanations/textbook-solutions/principles-of-economics-8th-edition-9781305585126");">
*

})}else;home window.location.assign("https://steustatiushistory.org/explanations/textbook-solutions/online-learning-center-to-accompany-essentials-of-investments-8th-edition-9780077246006");">
*

Online Learning Center to acfirm Essentials of Investments8th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
})}else;window.area.assign("https://steustatiushistory.org/explanations/textbook-solutions/principles-of-microeconomics-8th-edition-9781305971493");">
*

})}else;home window.place.assign("https://steustatiushistory.org/explanations/textbook-solutions/principles-of-microeconomics-4th-edition-9780324319163");">


See more: Express This Displacement In Liters (L) By Using Only The Conversions 1L=1000Cm3 And 1In=2.54Cm.

*