1. A debenture is: Group of answer choices a secured bond a callable bond an unsecured bond a redeemable bond 2. A convertible bond Group of answer choices comes with a retractable top can be called in for early retirement can be turned in by the investor for early retirement can be swapped for other securities of the issue, typically stock
1. A debenture is: Group of answer choices a secured bond a callable bond an unsecured bond a redeemable bond 2. A convertible bond Group of answer choices comes with a retractable top can be called in for early retirement can be turned in by the investor for early retirement can be swapped for other securities of the issue, typically stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. A debenture is:
Group of answer choices
a secured bond
a callable bond
an unsecured bond
a redeemable bond
2. A convertible bond
Group of answer choices
comes with a retractable top
can be called in for early retirement
can be turned in by the investor for early retirement
can be swapped for other securities of the issue, typically stock
3. The coupon interest rate:
Group of answer choices
is the same as the effective interest rate
is the same as the market interest rate
is smaller than the stated interest rate.
is the same as the stated interest rate
4. A bond has a face value of $10,000,000. It has a stated interest rate of 5% and a market interest rate of 6%. It sold for $900,000. It pays interest once a year on December 31. How much interest will the company pay each year?
Group of answer choices
$500,000
$450,000
$600,000
$540,000
5. A bond has a stated interest rate of 13% and a market interest rate of 12% It has a face value of $1,000. Interest is payable each February 1 and August 1. How much interest would the company pay on February 1?
Group of answer choices
$130
$120
$65
$60
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