.When is it considered that the interest rate stated on the note is unrealistic? I. The note bears an interest rate that is significantly different from prevailing interest rate for similar notes. II. The face value of the note is significantly different from the market value of the consideration given up in exchange for the note. a. I only b. II only c. Either I or II d. Neither I nor II

.When is it considered that the interest rate stated on the note is unrealistic? I. The note bears an interest rate that is significantly different from prevailing interest rate for similar notes. II. The face value of the note is significantly different from the market value of the consideration given up in exchange for the note. a. I only b. II only c. Either I or II d. Neither I nor II

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer question 70
#45 A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called: a bond. a compensating balance. a letter of credit. an assignment. factoring.
Which of the following statements is correct? O There is no interest included in a zero-interest-bearing note. O A long-term note's fair value and present value are always the same. O A note is signed by the payee in favour of the maker. O All notes contain an interest element because of the time value of money.
4. Convertible notes typically earn accrued interest, which can go unpaid but affects the value of the security at conversion. True False Uncertain 5. As a practical matter, the distinction between SAFES and convertible notes is important because one is equity-like and one is debt-like. True False Uncertain 6. The convertible note typically does not require the interest to be repaid unless the note is converted into equity. True False Uncertain
The real rate of interest is the: a.rate assuming no inflation b.observed rate of interest c.market rate of interest d.None of the above.
Which of the following are money market securities?I. Jumbo CDsII. Short-term municipal debtIII. U.S. Treasury billsIV. Commercial paper A. I and IV only B. II and III only C. I, II, and IV only D. II, III, and IV only E. I, II, III, and IV
D3) Finance Use covered interest rate parity (CIP) to show that a fixed exchange rate and free capital flows imply that a central bank cannot set the interest rate independently from the interest rate set by the reference currency's central bank.
The maturity value of a note receivable is equal to the sum of the face amount of the note O plus the interest O plus nothing else O none of these answers are correct Ominus the interest
4 - At what rate is the valuation of demand deposit accounts in foreign currency in the bank account?A) Nominal valueB) Foreign exchange selling rateC) Exchange rateD) With effective purchase rateE) With comparable value
What kind of Interest does a negotiable certiﬁcates of deposit issued by large commercial banks carry? a. Variable Interest Rate b. Fixed Interest Rate c. No Interest Rate d. Changing Interest rate