ACC 300 at University of Michigan--Ann Arbor

1. Bond Theory Multiple Choice

in Topic 11 (Problem 1 of 5)

When bonds are sold for more than the face amount, this means that the:

  1. Maturity value will be greater than the face amount
  2. Bonds are sold at a discount
  3. Coupon rate of interest is more than the market rate of interest
  4. The company will not have to record interest expense on the bond
  5. The cash interest payment will be less than interest expense each period
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The Rest Of The Practice Problems

Click Here to View All Topic 11 Problems at Once View
1 Bond Theory Multiple Choice
You are here. 		Easy
2 Bond Issue Prices Moderate
3 Coupon and Market Rates Multiple Choice Moderate
4 Bond Amortization Hard
5 Bond Retirement Hard
← Topic 10

Topic 11 Videos

1 Intro to Bonds 10:04
2 Discounts and Premiums 7:34
3 Selling at a Discount 7:15
4 Selling for a Premium 8:11
5 Amortization 21:42
6 Borrowing Cost 6:33
7 Interacting with Market Rates 5:30
8 Retiring Bonds 9:54
Topic 12 →