Question : 24.              In a debt instrument, named assets that creditors will : 1370056

 

 

24.              In a debt instrument, named assets that creditors will receive if the borrower defaults on the note are called:

A)collateral

B)covenants

C)debentures

D)leveraged assets

 

25.              A long-term note secured by land or buildings that serve as collateral, is referred to as a:

A)mortgage

B)debenture

C)property dividend

D)subordinated note

 

 

26.              A bond issue which specifies that certain portions of the total bond issue are due periodically over the life of the bond is called a:

A)serial bond

B)bond indenture

C)registered bond

D)redeemable bond

 

 

27.              Cabal Company issued debentures with a face interest rate of 6 percent and a market interest rate of 5 percent.  How will interest expense compare to the cash interest paid each period?

A)interest expense will be greater

B)interest expense will be less

C)they will be equal

D)unable to determine from the information given

 

 

28.              On January 1, 2010, Complot Corporation issued debentures with a face interest rate of 6 percent and a market interest rate of 7 percent.  How will interest expense in 2010 compare with cash interest paid and due in 2010?

A)it will be the same

B)it will be greater

C)it will be less

D)unable to determine from the information given

 

 

 

29.              Which of the following statements about convertible bonds is/are true?

A)conversion of bonds into stock is at the issuing firm’s option

B)convertible bonds usually have a higher interest rate than nonconvertible bonds

C)the bonds will be converted only if the value of the stock is greater than the value of the bonds

D)all of the above are true

 

 

30.              Bonds with a face interest rate receive cash proceeds equal to the present value of the

A)principal to be paid at the maturity date

B)interest to be paid over the term of the bonds

C)interest to be paid over the term of the bonds plus the present value of the principal to be paid at the maturity date

D)interest to be paid over the term of the bonds minus the present value of the principal to be paid at the maturity date

 

 

31.              The cash interest paid on a note during a period is equal to the

A)maturity value multiplied times the face interest rate.

B)maturity value multiplied times the effective interest rate.

C)carrying value at the beginning of the period multiplied times the face interest rate

D)carrying value at the beginning of the period multiplied times the effective interest rate

 

 

32.              The interest expense on a note during a period is equal to the

A)maturity value multiplied times the face interest rate.

B)maturity value multiplied times the effective interest rate.

C)carrying value at the beginning of the period multiplied times the face interest rate

D)carrying value at the beginning of the period multiplied times the effective interest rate

 

33.              The total amount of interest expense over the life of a note is:

A)The face value times the face interest rate times the number of interest payments over the life of the note.

B)The face value of the note times the market interest rate times the number of interest payments over the life of the note.

C)The total of the cash outflows of the note over the life of the note less the proceeds of the note.

D)The proceeds of the note plus the cash interest paid less the maturity value of the note.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more