A $501,000 bond issue sold for $483,000. Therefore, the bonds:Multiple ChoiceSold for the $501,000 face amount less $18,000 of accrued interest.Sold at a discount because the stated interest rate was higher than the market rate.Sold at a premium because the stated interest rate was higher than the market rate.Sold at a discount because the market interest rate was higher than the stated rate.

Bonds- A bond is a contract in which the issuer commits to pay periodical coupons in exchange for…

Answered: A $501,000 bond issue sold for…

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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Consider the following three bond quotes: a Treasury note quoted at 98.84, a corporate bond quoted at 103.10, and a municipal bond quoted at 101.75. If the Treasury and corporate bonds have a par value of $ 1,000 and the municipal bond has a par value of $5,000, what are the prices of these three bonds in dollars?
An OMR 80,000 bond issue sold for 98. Therefore, the bonds were: Select one: a. Sold at a discount because the stated rate of interest was lower than the effective rate. b. Sold at a premium because the stated rate of interest was higher than the yield rate. c. Sold for the OMR 80,000 face amount less OMR 10,000 of accrued interest. d. Sold at a discount because the effective interest rate was lower than the coupon rate
You invest in bonds yielding an interest rate of 2.5 percent, utility stock yielding an interest rate of 5.3 percent, and a bank certificate yielding an interest rate of 7.25 percent. The total interest earned in all three accounts in one year was $5,061.30 dollars. The amount allocated to the bonds was 200 less than the amount allocated to the bank certificate, and the amount allocated to the utility stock was 2 times the amount allocated to the bonds. What was the total amount of money the person had to invest?The total amount invested was $
A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to record the redemption would include a Oa. loss on bond redemption of $3,000 Ob. gain on bond redemption of $3,000 Oc. loss on bond redemption of $4,000 Od. gain on bond redemption of $4,000 7 a I' B in 20 D W 14 Previous Next ^04) O
Presented below is a partial amortization schedule for Discount Pizza.1. Record the bond issue assuming the face amount of bonds payable is $70,000. 2. Record the first interest payment. 3. Explain why interest expense increases each period.
Colson Inc. issues 10-year bonds with a maturity value of $300,000. If the bonds are issued at a discount, this indicates that: Question 15 options: the contractual interest rate exceeds the market interest rate. the market interest rate exceeds the contractual interest rate. the contractual interest rate and the market interest rate are the same. no relationship exists between the two rates.
You purchased a $20,000 bond when there was 17 years to maturity. The bond has a coupon rate of 4.48 %. At the time of purchase the yield to maturity was 2.98%. How much did you pay for the bond? Enter your answer in blank #1. (Round) your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.) • Was the bond purchased at a premium or a discount? Enter "premium" or "discount" in blank #2. • What was the amount of premium or discount on the bond? Enter your answer in blank #3. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.) Blank #1 Blank #2 Blank # 3
A $516,000 bond issue sold for $477,000. Therefore, the bonds: Multiple Choice O Sold at a discount because the market interest rate was higher than the stated rate. O Sold at a discount because the stated interest rate was higher than the market rate. Sold for the $516,000 face amount less $39,000 of accrued interest. Sold at a premium because the stated interest rate was higher than the market rate.
Please show your work.
33. Help me selecting the right answer. Thank you
Please I want answer for this question of multiple choice. Big thanks
i picked the first one. explain to me why the answer is the third solution as opposed to the first one?

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A $501,000 bond issue sold for $483,000. Therefore, the bonds: Multiple Choice Sold for the $501,000 face amount less $18,000 of accrued interest. Sold at a discount because the stated interest rate was higher than the market rate.