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- Question 47: Match each financial function to its best description. PMT PV Table FV Calculates the value of a bond at a later date Calculates the required payment for a bond Calculates the current value of a bondQuestion 27 The face value of a bond is O a. The amount payable at the maturity date. O b. The amount used to calculate periodic interest payments. O c. The par value of the bond. O d. All of the above are correct. Moving to another question will save this response.Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6. define, describe, why use Stock split 7. Stock dividend –…
- Question 6 - Two of the main factors in determining the price at which bonds will sell are the contract rate and the coupon rate. the contract rate and the stated rate. the market rate and the discount rate. the stated rate and the market rate.Q15 Regarding a bond's characteristics, which of the following is the principal loan amount that the borrower must repay? Multiple Choice maturity date time to maturity value par or face value call premiumDuration is a measure of bond price sensitivity to interest rate changes. Question 13 options: True False
- Question 9 The credit risk of investing in bonds is also known as: A seesaw wffect B) default risk (C) reinvestment risk (D) exchange rate riskQUESTION 28 Bond (cash) interest payments can be calculated as follows: Interest Payment = Principal × Market Rate × Time True Falsewhich one is correct please confirm? QUESTION 27 The term structure of interest rates is related to the ____ risk premium. a. seniority b. marketability c. default d. maturity
- QUESTION 19 Which of the following is not a correct statement about the bond? Bond can be either non-interest-bearing or interest-bearing. Non-interest-bearing bonds sell at discount upon issuance. Price of a discount bond will go up as it approaches maturity. There is an inverse relation between the bond price and interest rate. Baseline interest rate for the bond market is LIBOR rate.Question 43: Spreading out the impact of a bond discount or bond premium over the life of the bond is referred to as bond amortization. Answer: A. TrueB. FalseQuestion 3 What is the relationship between risk premiums and bond ratings?