Dylan Corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a time when themarket rate of interest is 9%. The straight-line method is adopted for the amortization of bond discount orpremium. Which of the following statements is true?
a. The amount of annual interest paid to bondholders remains the same over the life of the bonds.
b. The amount of annual interest expense decreases as the bonds approach maturity.
c. The amount of annual interest paid to bondholders increases over the 15-year life of the bonds.
d. The carrying amount decreases from its amount at issuance date to $2,000,000 at maturity.
a
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The sum of the carrying value and the redemption price at the time bonds are redeemed results in the gain or loss on redemption
a. True b. False Indicate whether the statement is true or false
The transfer of technical data to a foreign citizen while present in the U.S. is generally not considered to be an export
a. True b. False Indicate whether the statement is true or false
In Troix City, the learning rate is based on a tripling of output instead of the traditional doubling. The first unit of a long production run was produced in 20 hours
In Deux City across the river, the learning rate is based on the usual doubling of output. The first unit of the production run in Deux City took 30 hours. At what level of output will the workers in Deux City become faster than those in Troix City if both locations enjoy an 80% learning rate? A) 27 units B) 31 units C) 35 units D) 39 units
A firm may be a monopolist even though it is not the sole seller in a market.
Answer the following statement true (T) or false (F)