The return payable on Bond is called Select one: a. Commission b. Discount c. None of the options d. Interest e. Brokerage

Q: A callable bond: Select one: a. can be paid off early at either the issuer's or the bondholder's…

A: Organizations issue bonds for financing their operation and pay the interest on these bonds annually…

Q: What is the excess of the issue price of bonds over their face amount called? premium discount…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

Q: 2. Term structure premium, an inflation of bond and bond default premium are included in A. risk…

A: A bond includes various risks like(i) Term structure risk or maturity risk(ii) Inflation risk(iii)…

Q: Question 6 In bond financing, if the interest on bonds (contract rate) higher than the market…

A: Bonds  Bonds are those fixed-income instruments that are used by states, companies, municipalities,…

Q: When the bond interest rate > the market rate, the bonds are issued at a discount. Select one: O…

A: Bond issued has fixed percentage of interest rate which is payable by bond issuer to bond holder.…

Q: The relationship between bond prices and the interest rate bonds pay: Seleccione una: a. is Positive…

A: Companies issue bonds in order to meet their requirements of funds. Companies pay a fixed rate of…

Q: Define each of the following terms:c. Floating-rate bond; zero coupon bond; original issue…

A: Floating rate bond: Floating rate bonds also known as floating rate notes (FRNs).Floating rate bonds…

Q: If the market rate of interest is greater than the contractual rate of interest, bonds will sell a.…

A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…

Q: A strip bond is Select one: O a. a financial tool that has an unknown payout O b. a long term…

A: A strip bond is a marketable bond that has been stripped of all interest payments and is one of the…

Q: 4. When the market rate of interest is greater than the contract rate of interest, the bonds should…

A: Bonds are a form of debt or loan taken by the company, on which company has to make regular interest…

Q: For a bond issue that sells for less than its face value, the market rate of interest is a. Higher…

A: The correct answer is option (a)

Q: When a bond sells at a discount, the carrying value ________ after each amortization entry.A.…

A: Bonds payable is a form of loan or debt that is being taken by the business. Regular interest…

Q: Which of the following items are basic elements that affect the value of bond?   I. The required…

A: The value of the bond depends on factors such as par value, coupon rate, interest frequency, yield…

Q: . Distinguish between the following values relative to bonds payable: a.    Maturity value. b.…

A: Definition: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies,…

Q: The method used to value a default-free zero coupon bonds (such as T-bills) requires that the…

A: In zero coupon bond there is no coupon available during life of bond. so these are called zero…

Q: How is interest expense calculatedusing the simplified approach to the effective-interestmethod for…

A:

Q: When a bond is first issued, it is sold at a. any of these. b. discount. c. face value. d.…

A: Bonds, when issued first, are issued at the face value but such bonds can be sold at both below the…

Q: mortgage bond, a debenture, or a subordinated debenture

A: Bond refers to the investment securities in which an investor lends money to the government in…

Q: the carrying amount of bonds redeemed is more than the redemption price, the difference is recorded…

A: Bonds are financial instruments or debt securities that are issued by corporations, governments, and…

Q: To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: The effective interest technique is used to charge a discount on a bond that is due to be paid to…

A: The most effective approach to generating interest is... To amortize a bond over some time, the…

Q: Under what situation might a bond discount arise when issuing bonds? Select one: a. The coupon rate…

A: The correct answer is:b. The effective or yield rate is less than the coupon rate.When issuing…

Q: Which of the follwing statement is correct. As the credit risk of a bond increases: A. The YTM…

A: Credit risk is risk of default of bond issues and as credit increase the required rate on bonds…

Q: All else the same, a will decrease the required return on a bond. Select one: O a. sinking fund O b.…

A: Required return on the bond is affected by several factors such as the credit rating of the bond and…

Q: The market rate of interest for a bond issue that sells for more than its face value is      a.…

A: Bonds payable are one of the sources of finance and are shown as liability. If the stated interest…

Q: When bonds are retired at​ maturity, ________. A. the carrying value always equals the face value…

A: Concept used:

Q: dons premium or discount refer to the interest rate, higher of lower than what? or does it refer to…

A: The premium or discounted bonds can depicts the interest rate that will be offered by the bond…

Q: Bonds are priced in the market so that their A. stated rate B. yield C. discount D. par value is the…

A: Bonds are debt securities issued by entities such as governments, corporations, or municipalities to…

Q: The rate of interest actually earned by bondholders is called the Select one: O a. effective rate. O…

A: Solution Concept If the coupon rate of bond is greater than the market rate of interest , bond is…