Question 1

What are "zero-coupon bonds"?

Accepted Answer

A) Bonds that pay the market rate of interest. 
B) Bonds that are unsecured. 
C) Bonds that do not pay interest. 
D) Bonds that are sold at a premium. 
A) Bonds that pay the market rate of interest. 
B) Bonds that are unsecured. 
C) Bonds that do not pay interest. 
D) Bonds that are sold at a premium.

Question 2

A $100,000 5-year 7% bonds bond is issued on January 1,2012.The bond pays interest annually.The market rate is 6%.What is the selling price of the bonds,rounded to nearest dollar?

Accepted Answer

A) $4,213 
B) $95,500 
C) $100,000 
D) $104,213 
A) $4,213 
B) $95,500 
C) $100,000 
D) $104,213

Question 3

Ginny Inc.sold $800,000 of two-year bonds for $701,500 less commissions of $50,500.Interest is of 5.5% is payable semi-annually.What is the effective rate of interest (round to 2 decimal places)?

Accepted Answer

A) 5.50 % 
B) 8.43% 
C) 8.65% 
D) 17.29% 
A) 5.50 % 
B) 8.43% 
C) 8.65% 
D) 17.29%

What are "zero-coupon bonds"?

A $100,000 5-year 7% bonds bond is issued on January 1,2012.The bond pays interest annually.The market rate is 6%.What is the selling price of the bonds,rounded to nearest dollar?

Ginny Inc.sold $800,000 of two-year bonds for $701,500 less commissions of $50,500.Interest is of 5.5% is payable semi-annually.What is the effective rate of interest (round to 2 decimal places)?

Current Liabilities and Contingencies

Equities

Complex Financial Instruments

Earnings Per Share

Accounting for Income Taxes

Pensions and Other Employee Future Benefits

Accounting for Leases

Statement of Cash Flows

Filters

Exam 12: Non-Current Financial Liabilities

What are "zero-coupon bonds"?

A $100,000 5-year 7% bonds bond is issued on January 1,2012.The bond pays interest annually.The market rate is 6%.What is the selling price of the bonds,rounded to nearest dollar?

Ginny Inc.sold $800,000 of two-year bonds for $701,500 less commissions of $50,500.Interest is of 5.5% is payable semi-annually.What is the effective rate of interest (round to 2 decimal places)?

Current Liabilities and Contingencies

Equities

Complex Financial Instruments

Earnings Per Share

Accounting for Income Taxes

Pensions and Other Employee Future Benefits

Accounting for Leases

Statement of Cash Flows

Filters