Which of the following items are basic elements that affect the value of bond?   I. The required rate of return II . The interest payment III. The maturity period IV. The payback period   A. I and II B. I and III C. I, II and III D. IV only

Q: he interest rate used to calculate the present value of a bond's cash flows is often referred to as…

A: Interest rate:Interest rates of bonds are an essential aspect of the financial market, as they…

Q: Which of the following is considered the principal when figuring interest for a bond? effective…

A: Bonds   Bond is a long-term financial instrument issued by a company for which the company pays…

Q: What effect do interest rates have on bond prices? What are the underlying assumptions that go into…

A: Bond: Bond refers to debt security issued by the company from the debt investors to raise capital.…

Q: What does the call provision for a bond entitle the issuer to do?

A: The call provision for a bond is a feature that allows the issuer, which is typically a corporation…

Q: Which of the following is correct?   a. The terms, “yield rate”, “ stated rate”, and “market rate”…

A: Bonds are Debt instruments issued by Corporate to investors to raise funds. Stated Rate of Bond…

Q: What are some of the specific bond terms to understand the yield to maturity?

A: Yield to maturity (YTM) is the foreseen absolute profit for a bond if the bond holds until due or…

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: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

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: How do we determine the present value of a bond when market rate differs from its contract rate?

A: The bond is a type of long-term debt that the company issues to fulfill the demand for cash.…

Q: What is the stated rate for a bond?

A:

Q: What is the carrying amount of a bond?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Define the following Bond related terms: Issue Date Face Amount Term Contract Rate Payment Frequency…

A: Bonds refers to the security issued by corporate companies or government as and when they need to…

Q: 4. What best describes the discount on bonds payable account? a.An asset b.A liability c.An expense…

A: Discount on bonds payable account is used when a bond is issued at discount.

Q: 10. The bond interest expense reflected on the income statement should reflect an amount based on…

A: The bond interest expense reflected on the income statement should reflect on amount based on the…

Q: A discount or premium on bonds payable can be defined by which of the following statements?

A: The correct answer is: (C) The difference between the market price on the issue date and the face…

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: 4. In which of the following situations will the book value of a bond be equal to its maturity…

A: The market rate is the yield rate in the market on bond and the coupon rate is the rate which is…