Ordinarily the proceeds from the sale of a bond issue will be equal to a the face

Ordinarily the proceeds from the sale of a bond issue will be equal to a the face

21. Ordinarily, the proceeds from the sale of a bond issue will be equal to: 
A. The face amount of the bond.
B. The total of the face amount plus all interest payments.
C. The present value of the face amount plus the present value of the stream of interest payments.
D. The face amount of the bond plus the present value of the stream of interest payments.

22. Bonds usually sell at their: 
A. Maturity value.
B. Present value.
C. Face value.
D. Call Price.

23. A $500,000 bond issue sold for $510,000. Therefore, the bonds: 
A. Sold at a premium because the stated interest rate was higher than the market rate.
B. Sold for the $500,000 face amount plus $10,000 of accrued interest.
C. Sold at a discount because the stated interest rate was higher than the market rate.
D. Sold at a premium because the market interest rate was higher than the stated rate.

24. A $500,000 bond issue sold for $490,000. Therefore, the bonds: 
A. Sold at a discount because the stated interest rate was higher than the market rate.
B. Sold for the $500,000 face amount less $10,000 of accrued interest.
C. Sold at a premium because the stated interest rate was higher than the market rate.
D. Sold at a discount because the market interest rate was higher than the stated rate.

25. For a bond issue that sells for more than the bond face amount, the stated interest rate is: 
A. The actual yield rate.
B. The prime rate.
C. More than the market rate.
D. Less than the market rate.

26. For a bond issue that sells for less than the bond face amount, the stated interest rate is: 
A. The actual yield rate.
B. The prime rate.
C. More than the market rate.
D. Less than the market rate.

27. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct? 
A. Both bonds will sell for the same amount.
B. Bond X will sell for more than Bond Y.
C. Bond Y will sell for more than Bond X.
D. Both bonds will sell at a premium.

28. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 9% interest. The current market rate of interest is 8%. Which of the following is correct? 
A. Both bonds will sell for the same amount.
B. Bond X will sell for more than Bond Y.
C. Bond Y will sell for more than Bond X.
D. Both bonds will sell at a discount.

29. Raiders Company issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 12%. What is the issue price of the bond? 
A. $83,920
B. $46,320
C. $53,605
D. $50,000

30. Raiders Company issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond? 
A. $83,920
B. $46,320
C. $54,055
D. $50,000

Place Order Now

Quality Assignments Help Website

Cost of your order

Pages
{{total || ""}}

Why Choose Us

Top Quality and Well-Researched Papers

We ensure that all your instructions are followed to the letter. You are able to choose the level of interest; professional, college, or high school. We will assign a writer who will cover all your specifications.

Professional and Experienced Academic Writers

We have a team of well trained and experiences assignment writers who are PhD and master’s holders. Our writers are can handle more than 91 disciplines.

Free Unlimited Revisions

If your assignment is not covered to your expectation, you can send your order for revision. The order should be submitted before 10 days elapses for review You can contact our support team or login to your personal account to submit your request.

100% Money-Back-Guarantee

We ensure on-time delivery of your papers. For clarification purpose, we may contact you regarding deadline extension. In case you cannot provide us with more time, we guarantee a 100% refund.

Originality & Confidentiality

We use professional tools to ensure all assignment help documents you receive are free of plagiarism. Our editors ensure optimum review of all quotations in the text. We also ensure confidentiality in our service delivery.

24/7 Customer Support

Our team of experts is available 24/7 to ensure that you are provided with the top customer experience. Any time you need assignment help, you can reach us and get the best experience with ours services.

Our Services

You don’t have to struggle with your papers. You need ample sleep; our writers will cover you. We provide writing services in all disciplines.

Essays

Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing

Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Coursework

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.