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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 bond48 Which of the following is true with regards to the accrued interest on bonds payable that are sold between interest dates? Group of answer choices The accrued interest is computed using the effective rate The accrued interest is extra income to the buyer and treated as bond issue cost of the buyer The accrued interest is added to the issue price of the bond to determine the total cash proceeds from bond issuance The accrued interest will be paid to the seller when the bonds matureCh 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 –…
- RITICAL THINKING AND CONCEPTS REVIEW L01 6.1 Treasury Bonds Is it true that a U.S. Treasury security is risk free?Question 20 of 30: Securities backed by mortgage is the example of O Securitization O Take-out finance O Factoring O Pooling and transfet2 How is the interest paid to bondholders affected by the issuance of a bond at a discount or premium? Is interest paid on the face of the bond or the issue price?
- QUESTION 14 Which type of bond has interest payments that are exempt from federal income taxes? A. Certificates of deposit B. Corporate bonds C. Treasury bonds D. Municipal bondsBond A is a municipal bond and Bond B is a corporate bond. Which bond should have the lower yield to maturity? Select one: a. B b. A c. A=BBond A is a municipal bond and Bond B is a corporate bond. If you pay a very high tax rate, which bond do you prefer? Select one: a. B b. A c. A=B
- Q19 Which of the following statements are correct regarding interest component in the purchase price of bonds? (i) The fair value of a bond purchased cum-interest is the quoted price of the bond on the bond market. (ii) The fair value of a bond purchased cum-interest is the quoted price of the bond on the bond market less interest portion in the bond price (iii) The fair value of a bond purchased cum-interest is the quoted price on the bond market. (iv) The dividend component has no influence in the accounting treatment of the investment in the bonds. Select one: a. (i), (ii) and (iii) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i) and (iv) onlyQ 22 Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans? Multiple Choice junk bonds credit quality securities asset-backed securities debenturesDiscussion 7 Ch 7 Is bond financing risky or safe for a company? Explain in details. Why bond investing safer for investor as opposed to stock? Explain Ronly Ounto