Which of the following statements are true of a privately placed bond? More than one answer may be correct. Multiple select question. It is directly placed with a lender. It is not offered to the public. It is traded in a regulated market. The terms and conditions of the bond are decided by a regulatory body.

Which of the following statements are true of a privately placed bond? More than one answer may be correct. Multiple select question. It is directly placed with a lender. It is not offered to the public. It is traded in a regulated market. The terms and conditions of the bond are decided by a regulatory body.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2MC: A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to...

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Select the description that best fits each term or phrase. A. Records and tracks the bondholders’ names. B. Is unsecured; backed only by the issuer’s credit standing. C. Has varying maturity dates for amounts owed. D. The legal contract between the issuer and the bondholders. E. Can be exchanged for shares of the issuer’s stock. F. Is unregistered; interest is paid to whoever possesses them. G. Maintains a separate asset account from which bondholders are paid at maturity. H. Pledges specific assets of the issuer as collateral. 1. Registered bond 5. Convertible bond 2. Serial bond 6. Bond indenture 3. Secured bond 7. Sinking fund bond 4. Bearer bond 8. Debenture
The bonds in which the name of the owners is not registered with the Corporation that issues them are known as:Response option group Bonds carrier Term bonds. Bond obligations. Secured bonds.
Which of the following statements concerning bonds is not a true statement? The bond indenture is prepared after the bonds are printed. Bonds are generally sold through an investment company. The bond indenture and bond certificate are separate documents. The trustee keeps records of each bondholder.
Which of the following is true regarding a bond? O The issuance must be approved by the board of directors. O The terms are set forth in a legal document called a bond indenture. O The contractual interest rate is also referred to as the stated rate. O All of the answer choices are correct.
Select the item that best fits each description A through H. Description A. Records and tracks the bondholders' names. B. Is unsecured; backed only by the issuer's credit standing. C. Has varying maturity dates for amounts owed. D. The legal contract between the issuer and the bondholders. E. Can be exchanged for shares of the issuer's stock. F. Is unregistered; interest is paid to whoever possesses them. G. Maintains a separate asset account from which bondholders are paid at maturity. H. Pledges specific assets of the issuer as collateral. Items Bearer bond Bond indenture Convertible bond Debenture Registered bond Secured bond
Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. Amortized cost Fair value (a) Indicate whether the bonds were purchased at a discount or at a premium. (b) (c) No. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) C 12/31/25 12/31/26 12/31/27 $489,700 $546,800 $501,000 496,100 535,800 501,000 Prepare the adjusting entry to record the bonds at fair value at December 31, 2025. The Fair Value Adjustment account has a debit balance of $1,100 prior to adjustment. Prepare the adjusting entry to record the bonds at fair value at December 31, 2026. Date eTextbook and Media List of Accounts Account Titles and Explanation Debit Cred
Which of the following specific features and material risks of a bond product should be disclosed prior to or at the time of transaction in Hong Kong? 1) credit quality of the bonds, issues and guarantors 2) financial ability of honouring paymment obligations 3) substantial indebtedness which may incur substantial additional indebtedness in the future 4) the Keepwell Deed is not a gurantee of the payment obligations of the Issuer under the Bonds A. 1 and 2 B. 2 and 3 C. 1, 3 and 4 D. all of the above
Explain the use of a sinking-fund provision. How can it reduce the investor’s risk? What are protective covenants? Why are they needed? Explain the use of call provisions on bonds. How can a call provision affect the price of a bond? Explain the use of bond collateral, and identify the common types of collateral for bonds. What are debentures? How do they differ from subordinated debentures? What is a bond indenture? What is the function of a trustee with respect to the bond indenture? What are the advantages and disadvantages to a firm that issues low- or zero-coupon bonds?
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Show how an open market sale affects the RBI’s balance sheet and also the balance sheet of the commercial bank of the purchaser of the bond sold by the RBI.
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