on 1/4/2015 Al Masaa company issued 1000 bonds the par value per bonds 50$, bonds bearing interest 11% is payable each July 12015 & 31/ March 1 2016. The bonds mature Dec. 2019. Notes payable would be debt at 1/4/2015 by: Select one: a. OMR500000 O b. None of the options c. OMR1000 d. OMR50000

on 1/4/2015 Al Masaa company issued 1000 bonds the par value per bonds 50$, bonds bearing interest 11% is payable each July 12015 & 31/ March 1 2016. The bonds mature Dec. 2019. Notes payable would be debt at 1/4/2015 by: Select one: a. OMR500000 O b. None of the options c. OMR1000 d. OMR50000

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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Concept explainers

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:

Question

on 1/4/2015 Al Masaa
company issued 1000 bonds the par
value per bonds 50$, bonds bearing
interest 11% is payable each July
12015 & 31/ March 1 2016. The
bonds mature Dec. 2019. Notes
payable would be debt at 1/4/2015
by:
Select one:
a. OMR500000
O b. None of the options
c. OMR1000
d. OMR50000

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