When bonds are issued at a premium: A. coupon interest paid decreases each period as bond premium is amortized. B. earnings of the firm decrease over the life of the bond as the bond premium is amortized. C. earnings of the firm increase over the life of the bond as the bond premium...
Why would a corporation issue bonds payable instead of issuing stocks? What determines the higher effective rate of interest for bonds? Discuss where is amortized bond premium on the financial statements? What is the impact of increasing the discount rate on the price of a bond?
When is interest paid on a zero-coupon bond? a. Quarterly. b. Monthly. c. At the end of the bond's term. d. Yearly. When a loan is repaid do you account for only the interest paid or the principal? When interest is paid on both the princi...
What is the present value of the interest payments on the date when the bonds are issued? A. $15726. B. $65582. C. $49857. 相关知识点: 试题来源: 解析 [答案]A [解析]Present value of the interest payments on the date of issue is 15726=[I/Y=8.00%, N=4, PMT=4748.17 (67831...
If the company overseeing an ETF in your portfolio decides to close it, you're a soon-to-be former shareholder. Perhaps the fund is liquidating because it didn't generate investor interest or attract sufficient assets to cover administrative costs; regardless, the manager no longer sees a viab...
Questions 13 to 15 are based on the following news. At the end of the news item, you will be given 15 seconds to answer each of the questions. Now listen to the news.? 13. According to the UN Human Development Report, which is the best place for women in the world??
When interest rates rise, mortgage rates rise as well, putting a damper on the real estate market. In fact, since the beginning of 2022, the Real Estate Select Sector SPDR Fund (ticker: XLRE) is one of the worst-performing sector exchange-traded funds, or ETFs, in the stock mar...
When interest rates are low, bond prices are high. Because low-interest rates cause higher bond prices and result in a lower return on investment, the demand for bonds is lower. However, the supply of bonds increases as bond prices increase and interest rates decrease. ...
When interest rates are super low, an increase in rates can do a lot of damage to bonds, which is what we’ve seen so far this year. 2022 has been the worst year for bonds since 1976. Looking at the latter half of the 1970s, however, rates increased from 5% to 10%, yet bonds ...