Indicate whether each of the following statements about bonds payable is true or false.________ a) A convertible bond may be converted into stock of the issuing company at the option of the bondholder.________ b) Businesses typically issue bonds to banks to borrow large amounts of cash.________ c) A debenture is an unsecured bond.________ d) Callable bonds may be turned in for early retirement at the option of the bondholder.________ e) The issuer of a bond receives cash when the bond is issued.
What will be an ideal response?
a) T b) F c) T d) F e) T
a) This is true. The bondholder, not the issuer, has the option of converting a convertible bond into stock.
b) This is false. Businesses typically issue notes to banks to evidence borrowing arrangements.
c) This is true. Debenture bonds are unsecured bond issued by large, established companies with excellent credit.
d) This is false. The bond issuer, not the bondholder, has the option of calling a callable bond.
e) This is true. The issuer of a bond receives cash and the bondholder pays cash when a bond is issued.
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The text suggests that in the Volkswagen scenario, choosing not to participate will be personally damaging to the engineer. How should the engineer deal with this possibility?
a. Seek the help of a mentor to get moved to another project. b. Quit the company rather than refuse to participate from inside the company. c. Be a public whistleblower in order to gain public sympathy. d. Pretend to go along with the scheme but undermine it from the inside.
How is visionary leadership often related to transactional leadership?
What will be an ideal response?
Which of the following statements about manufacturers is FALSE?
A. The greatest growth in manufacturing has occurred in countries where labor is cheapest. B. Most U.S. factories operate in large metropolitan areas. C. The majority of U.S. manufacturers are small, with three-quarters having fewer than 20 employees. D. NAICS codes help marketers classify different types of manufacturing businesses. E. Manufacturing output in the United States is shrinking.
According to the hedging principle, fixed assets should NOT be financed with
A) permanent plus spontaneous financing. B) temporary financing. C) permanent financing. D) equity financing.