If an issuer sells bonds at a premium:
A) The carrying value of the bond stays constant over time.
B) The carrying value increases from the par value to the issue price over the bond's term.
C) The carrying value decreases from the par value to the issue price over the bond's term.
D) The carrying value increases from the issue price to the par value over the bond's term.
E) The carrying value decreases from the issue price to the par value over the bond's term.
E) The carrying value decreases from the issue price to the par value over the bond's term.
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Indicate whether the statement is true or false
Assume perfect capital markets except that taxes DO exist. Why does the value of the interest tax shield accrue entirely to the shareholders and none of the value goes to the bondholders?
What will be an ideal response?
Kenneth, aged sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true?
A) Sarah can obtain good title to the property. B) Kenneth can recover a portion of the property's value from Sarah. C) Kenneth is a minor and thus cannot recover money from Robin. D) Robin will still be held as the legal owner of the property.
It is important that the fit among the user, computer, and task all correspond
Indicate whether the statement is true or false