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thave been $950 and at retirement, the NBV would have been the same as the have been $950 and at retirement, the NBV would have been lower than the f have been $950 and at retirement, the NBV would have been higher than the have been $1.050 and at retirement, the NBV would have been the same as th

thave been $950 and at retirement, the NBV would have been the same as the have been $950 and at retirement, the NBV would have been lower than the f have been $950 and at retirement, the NBV would have been higher than the have been $1.050 and at retirement, the NBV would have been the same as th

FINANCIAL ACCOUNTING
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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A Bond with face value $1,000, coupon of 5% and maturity of 20 years was issued at 105. It was retired after 10 years. Which of the following is true? O The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been the same as the face value O The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been lower than the face value The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been higher than the face value O The total interest expense over twenty years would have been $1.050 and at retirement, the NBV would have been the same as the face value O The total interest expense over twenty years would have been $1050 and at retirement. the NBV would have been higher than the face value O The total interest expense over twenty years would have been S950 and at retirerment, the NBV would have been lower than the face value
Transcribed Image Text:A Bond with face value $1,000, coupon of 5% and maturity of 20 years was issued at 105. It was retired after 10 years. Which of the following is true? O The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been the same as the face value O The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been lower than the face value The total interest expense over twenty years would have been $950 and at retirement, the NBV would have been higher than the face value O The total interest expense over twenty years would have been $1.050 and at retirement, the NBV would have been the same as the face value O The total interest expense over twenty years would have been $1050 and at retirement. the NBV would have been higher than the face value O The total interest expense over twenty years would have been S950 and at retirerment, the NBV would have been lower than the face value
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