Reference no: EM13766270
1. If a 56,000, 10 percent, 10-year bond was issued at 104 on October 1, 2011, how much interest expense will accrue on December 31 if interest payments are made annually?
A) None
B) $144
C) $150
D) $500
2. The rate of interest that is printed on the bond is called the rate of interest.
A) stated
B) market
C) variable
D) maturity
3. By NOT accruing warranty expense:
A) reported liabilities will be overstated and net income will be understated.
B) reported expenses will be overstated and reported liabilities will be understated.
C) reported liabilities will be understated and net income will be overstated.
D) reported expenses will be understated and net income will be understated.
4. If the market rate of interest is greater than the bond's stated rate of interest, the bond will be issued at
A) a discount.
B) par.
C) a premium.
D) maturity value.
5. A $150,000 bond issue sold at 93.8 will cost.
A) whatever cost is negotiated.
B) $150,000.
C) $159,300.
D)$140,700.
6. A Convertible Bond
A) Mows the holder to trade the bond lot a set number Of common shares
B) Converts to a premium or discount at the date of sale
C) Converts the stated or coupon rate 10 the market rate of interest
D) Automatically becomes common stock at the maturity date
7. The Debt Ratio
A) Show what portion of the assets of a company are financed by owners
B) Indicates the company's ability to take on more debt
C) IS Calculated by dividing long term debt by Mal equity
D) Slows the return on all tong term liabilities
8. Bonds are issued by
A) Local government entities
B) Corporations
C) The federal government
D) All of the above
9. Bonds issued at a premium
A) WO decrease the interest expense of the company
B) Means the bond sold at a gain
C) Are more attractive to investors than a bend sold at face value
C) Will be redeemed before the maturity date
10. The debt ratio is calculated by dividing
A) Current liabilities by assets
B) Total Imbibes by total equity
C) Total liabilities by total assets
D) Current liabilities by net income
|
Federal funds are important sources of liquidity
: Repurchase agreements and federal funds are important sources of liquidity. The cost of using these markets spiked after Lehman Brothers failed.
|
|
Calculate the coefficient of variation
: The following probability distribution of expected returns have been determined for Benko Corporation Probability Expected Returns (Outcomes) .30 12%, .40 15%, .20 25%, .10 0%. First calculate the expected rate of return, r with ^? Now calculate the ..
|
|
A bond that pays interest annually yielded
: A bond that pays interest annually yielded 7.50 percent last year. The inflation rate for the same period was 5.50 percent. what was the actual real rate of return on this bond for last year?
|
|
Start investing for retirement and then made yearly payments
: Tom and Tricia are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start..
|
|
Accruing warranty expense
: By NOT accruing warranty expense:
|
|
Net present value of both new purchase and lease option
: Proust Manufacturing Co. produces personal fitness machines. The once successful line is no longer selling well, so the company is considering production of a new improved cardio-vascular machine. This can be done by buying needed production equipmen..
|
|
How economics can be used to analyze situation in prices
: explain how economics can be used to analyze the situation and predict changes in equilibrium prices and quantities. Will the change likely persist over time, or is it temporary?
|
|
Police practices and police community relations
: Develop a 700- to 1050-word speech based on the topic you selected in your Week Two individual assignment. Follow the outline created in Week Two and incorporate any changes suggested by the facilitator. Using this topic: Police practices and polic..
|
|
Emergency response bonds-annual yield to maturity
: Evans Emergency Response bonds have 5 years to maturity. Interest is paid semi annually. The bonds have a $1,000 par value and a coupon rate of 9 percent. If the price of the bond is $1,085.55, what is the annual yield to maturity? (Do not round inte..
|