41) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. These bonds sold at ________.
A) a premium
B) a discount
C) par
D) The answer cannot be determined from the information given.
42) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. These bonds sold at 98 because ________.
A) the stated interest rate was higher than the market rate of interest
B) the stated interest rate was lower than the market rate of interest
C) the bond was issued six months after yearend
D) this is an installment note
43) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. How much cash did IOU Corporation receive when the bonds were issued?
A) $784,000
B) $100,000
C) $108,000
D) $98,000
44) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. How much cash will bondholders receive on the first interest payment date?
A) $8,000
B) $4,000
C) $7,840
D) $0
45) On December 31, IOU Corporation issued $100,000 of 10-year, 8% bonds at 98. The bonds pay interest annually on December 31. How much cash will bondholders receive when the bonds mature? (Assume that the final payment of interest has already been made separately.)
A) $784,000
B) $100,000
C) $1,000,000
D) $98,000
46) On June 30, 2011, Xanadu Corporation issued $200,000 of 10-year, 8% bonds at 99. The bonds pay interest semi-annually on June 30 and December 31.These bonds sold at ________.
A) a premium
B) a discount
C) par
D) The answer cannot be determined from the information given.
47) On June 30, 2011, Xanadu Corporation issued $200,000 of 10-year, 8% bonds at 99. The bonds pay interest semi-annually on June 30 and December 31.These bonds sold at 99 because the ________.
A) stated interest rate was greater than the market rate.
B) stated interest rate was less than the market rate.
C) bonds were issued six months after yearend.
D) bonds are installment notes.
48) On June 30, 2011, Xanadu Corporation issued $200,000 of 10-year, 8% bonds at 99. The bonds pay interest semi-annually on June 30 and December 31. How much cash did Xanadu receive when the bonds were issued?
A) $200,000
B) $160,000
C) $198,000
D) $99,000
49) On June 30, 2011, Xanadu Corporation issued $200,000 of 10-year, 8% bonds at 99. The bonds pay interest semi-annually on June 30 and December 31. How much cash will bondholders receive on December 31, 2011, the first interest payment date?
A) $8,000
B) $4,000
C) $7,840
D) $16,000
50) On June 30, 2011, Xanadu Corporation issued $200,000 of 10-year, 8% bonds at 99. The bonds pay interest semi-annually on June 30 and December 31. How much cash will bondholders receive when the bonds mature? (Assume that the final payment of interest has already been made separately.)
A) $360,000
B) $200,000
C) $216,000
D) $98,000
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