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Neko [114]
3 years ago
9

A premium bond is defined as a bond that: Multiple Choice A) has a duration that is less than 1.0. B) has a face value that exce

eds its market value. C) is callable at a price which exceeds the face value. D) has a market price that exceeds par value. E) is selling for less than face value.
Business
1 answer:
zepelin [54]3 years ago
6 0

Answer:

D) has a market price that exceeds par value

Explanation:

Option A, incorrect, because duration is not less than 1 always and here duration might be less than or equal to maturity.

Option B, incorrect, the face value is less than market value in premium bond.

Option C , incorrect, because a premium bond could be non callable

Option D, correct, because market value of of bond is higher than par value on premium bond.

Option E, correct, it is a discount bond when price is less than par value

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Explanation: The question should be fill in the bracket with the terms - incorporate, estopped and single.

So it becomes.

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The firm normally will be ESTOPPED from denying corporate status. When this occurs, courts will treat the entity as a corporation, but only for the purposes of resolving a SINGLE dispute.

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3 years ago
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How much interest you pay depends on_________
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Answer:

The Interest Rate and how much you owe.

Explanation:

If you have a rate of 10% a month

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6 0
2 years ago
Branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance a
siniylev [52]

Answer:

1                   Cash                                                     11,190,000

                      Discount on Note Payable                810,000

                       Note Payable                                          12,000,000

2-                 Interest Expense                                   810,000

                          Discount on Note Payable                    810,000

3-                  Note Payable                                       12,000,000

                           Cash                                                     12,000,000

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In order to pass the Journal entry for issuance of Note Payable. First we need to calculate the Discount on issue of Bond Payable. The discount on note payable is calculated using the 12,000,000 x 9% x 9/12 = 810,000. In case of note payable is discount is interest expense for issuer hence on due corporation will pay full value of note to purchaser of note.

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