6, Callable bonds:

A Can be exchanged for a fixed number of the issuing corporation's common shares.

B Do not require payment of interest over the life of the bond issue.

C Are also called debentures.

D re usually not registered.

E Have an option whereby the issuing corporation may redeem them under specified conditions.

7, Barnes Corp issues $750,000, 9%, 20-year bonds. The current market rate is 8.5%. The total amount of interest owed to the bondholders for the semiannual interest payment is.

A $67,500

B $63,750

C $37,500

D $33,750

E $31,875

8, The market value of a bond is equal to:

A The present value of all future cash payments provided by a bond.

B The present value of all future interest payments provided by a bond.

C The present value of the principal of the bond.

D The future value of all future cash payments provided by a bond.

E The future value of all future interest payments provided by a bond.

9, The Discount on Bonds Payable account is:

A A liability.

B A contra liability.

C An expense.

D A contra expense.

E A contra equity.

10, Reporting for discontinued operations includes:

A Income or loss from operating the discontinued segment net of tax.

B Gain or loss from disposal of the segment's net assets net of tax.

C Tax benefits of the discontinued segment.

D Income or loss from operating the discontinued operations net of tax and gain or loss from disposal of the operation's net assets net of tax.

E All of these answers are correct.