When bonds are sold at a premium and the effective interest method is used, at each interest payment date, the interest expense:A.Remains constant.B.Is equal to the change in book value.C.Increases.D.Decreases.的答案是什么.用刷刷题APP,拍照搜索答疑.刷刷题
If the market rate is greater than the coupon rate, bonds will be sold at a premium. 参考答案:错 点击查看答案
"selling at a premium of 15%", this means that a bond with a face value of ?100 is currently selling for £115. This indicates that the rate of interest on this bond is attractive when compared with current market rates, creating demand for the bond and a rise in price.* ...
"selling at a premium of 15%", this means that a bond with a face value of ?100 is currently selling for £115. This indicates that the rate of interest on this bond is attractive when compared with current market rates, creating demand for the bond and a rise in price.* In the ...
They can be traded on the bond market and reach a market price. Hence, if a bond is “selling at a premium of 15%”, this means that a bond with a face value of ?100 is currently selling for ?115. This indicates that the rate of interest on this bond is attractive when compared...
purchased bonds at a discount of 10,000. Subsequently, Jent sold these bonds at a premium of 14,000. During the period that Jent held this investment, amortization of the discount amounted to 2,000. What amount should Jent report as gain on the sale of bonds? a. 24,000 b. 26,000 ...
purchased bonds at a discount of $10,000. Subsequently, Jent sold these bonds at a premium of $14,000. During the period that Jent held this investment, amortization of the discount amounted to $2,000. What amount should Jent report as gain on the sale of bonds? a. $24,000 b. $...
The premium is necessary to compensate the bond purchaser for the above average risk being assumed. Bonds are issued at a discount when the coupon interest rate is below the market interest rate. Bonds sold at a discount result in a company receiving less cash than the face value of the ...
Investors bid up to the price of the bond until it trades at a premium that equalizes the prevailing interest rate environment—in this case, the bond will trade at $2,000 so that the $100 coupon represents 5%.Likewise, if interest rates soared to 15%, then an investor could make $150...
Investors bid up to the price of the bond until it trades at a premium that equalizes the prevailing interest rate environment—in this case, the bond will trade at $2,000 so that the $100 coupon represents 5%.Likewise, if interest rates soared to 15%, then an investor could make $150...