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Inflation Indexed Bonds pay a fixed interest rate during the bond's life.
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- ANSWER AS MANY QUESTIONS POSSIBLE THIS IS A STUDY GUIDE Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6.…When the bond interest rate > the market rate, the bonds are issued at a discount. Select one: O True O FalseA trasury security in which periodoc coupon interest payments can be seperate from eachother ad from the orinciple payment is called a: A. STRIP B. T-notes C. T-Bonds D. G. O. Bond E. Revenue bond
- Describe a way to estimate the inflation premium(IP) for a t-year bond.From page 9-3 of the VLN, when determining the issue price of a bond, which interest rate would you use? Group of answer choices A. Stated rate B. Market rate C. Nominal rate D. Compound rate2-a bonds future payments are called its Please select one; a) cash flows b) maturity values c) discounted present values d) yields to maturity e) future value www w
- K Bonds are priced in the market so that their A. stated rate B. yield OC. discount OD. par value is the same as the market rate of interest.When the bond reaches its ______ the company repays the / its _______ maturity date; creditor payment due: interest amortization due: coupon rate all of the choices maturity date investorWrite the formulae of: Zero-coupon Bond & Non-zero coupon Bond Ordinary Annuity & Annuity Due (Present Value) Ordinary Annuity & Annuity Due (Future Value) Simple Interest & Compound Interest Perpetual Bond
- The value of a bond to increase if there is a/an ________ in interest rates.Bonds can be rate bonds with a constant coupon rate over the life of the bond, or they can be rate bonds with a coupon rate that varies over time depending on the level of interest rates. A. floating B. zero C. fixedWhen a bond sells at a discount, the carrying value ________ after each amortization entry.A. increasesB. decreasesC. stays the sameD. cannot be determined