Which cause of the decline in the bonds market value

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Problem 1: What type of bonds mature in installments?

A. Debenture.

B. Term.

C. Variable rate.

D. Serial.

Problem 2: In 20X1, Lee Co. acquired, at a premium, Enfield, Inc. 10-year bonds as a long-term investment. At December 31, 20X2, Enfield's bonds were quoted at a small discount. Which of the following situations is the most likely cause of the decline in the bonds' market value?

A. Enfield issued a stock dividend.

B. Enfield is expected to call the bonds at a premium, which is less than Lee's carrying amount.

C. Interest rates have declined since Lee purchased the bonds.

D. Interest rates have increased since Lee purchased the bonds

Reference no: EM132775757

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