Which of the following statements is correct?
a. Bonds are issued at a price that reflects the stated rate of interest on the day the bond is purchased.
b. If the face rate of interest on a bond is not equal to the market rate of interest, then the company desiring to issue the bonds must reprint its bond certificates.
c. The actual issue price of a bond represents the present value of all future cash flows related to the bond.
d. The market rate of interest has no bearing on the selling price of the bonds.
c
You might also like to view...
How would the XBRL style sheets be different for financial analysts as compared to the Internal Revenue Service?
What will be an ideal response?
The Assembling Department of Weathercoat Liners, Inc. had 8000 units in process on December 1 and received 15,000 units from the Sewing Department. The company uses FIFO. Calculate the number of units to account for by the Assembling Department for December.
A) 23,000 units B) 15,000 units C) 8000 units D) 7000 units
If a contingency that is probable can be reasonably estimated, a liability is recorded and an expense is accrued
Indicate whether the statement is true or false
Which of the following combinations results in a net loss reported on the income statement?
A. Total revenues of $60,000 and total expenses of $52,000. B. Total revenues of $40,000 and total expenses of $31,000. C. Total revenues of $20,000 and total expenses of $16,000. D. Total revenues of $80,000 and total expenses of $74,000. E. Total revenues of $70,000 and total expenses of $74,000.