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1. Bond Theory Multiple Choice

in Chapter 11 (Problem 1 of 8)

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 Chapter 11 Problems at Once View
1 Bond Theory Multiple Choice
You are here. 		Easy
2 Liability Classification Easy
3 Bond Issue Prices Moderate
4 Contingent Liabilities Moderate
5 Contingent Liabilities - Warranties Moderate
6 Coupon and Market Rates Multiple Choice Moderate
7 Bond Amortization Hard
8 Bond Retirement Hard
← Chapter 10

Chapter 11 Videos

1 Interest Bearing Notes 8:26
2 Non-interest Bearing Notes 6:16
3 Contingencies 5:58
4 Intro to Bonds 10:04
5 Discounts and Premiums 7:34
6 Selling at a Discount 7:15
7 Selling for a Premium 8:11
8 Amortization 21:42
9 Borrowing Cost 6:33
10 Interacting with Market Rates 5:30
11 Retiring Bonds 9:54
Chapter 12 →