Bond A and Bond B both have a maturity value of $1,000 and pay annual interest of 9%. The market rate of interest is also 9%. Bond A matures in 4 years and Bond B matures in 5 years. Which of the following is correct? A. Both bonds sell for more than $1,000.

B. Bond A will sell for more than Bond B. C. Both bonds sell for the same amount, $1,000. D. Bond B will sell for more than Bond A.

Question 3 (1 point) Saved Bonds payable (due 5 years from the balance sheet date) should be classified as follows: A contingent liability An element of the owners equity A long term liability A current liability Question 4 (1 point) Hambelton Ltd. issued $4,000,000 of 5% bonds payable on 1 September 2019 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20x8, and had an original term of five years. The accounting period ends on 31 December. The effective- interest method is used. What is the price of the bond? $3,482.240 $4,000,000 $4,129,439 $4,322,713 MacBook Question 6 (1 point) Bond A and Bond B both have a maturity value of $1,000 and pay annual interest of 9%. The market rate of interest is also 9%. Bond A matures in 4 years and Bond B matures in 5 years. Which of the following is correct? Both bonds sell for more than $1,000. Bond A will sell for more than Bond B. Both bonds sell for the same amount, $1,000. Bond B will sell for more than Bond A. Question 7 (1 point) The rate of interest specified on the face of the debt is called the Effective interest rate Stated interest rate. Yield interest rate. Market interest rate. with a nominal (st Question 8 (1 point) James Corp issued a bond on Jan 1, 20x5 for $10,000 with a nominal stated) interest rate of 3% and market rate of 8%. Interest is payable Dec 31 20x5 and 20X6, and entire principal is due Dec 31,20X6. The credit side of the journal entry when issuing the bond is: Cash $9,108 Discount on Bond Payable $892 Bond Payable $10,000 Bond Payable $9,108 Question 9 (1 point) bonds can be retired before maturity (fill in the blank). Serial Redeemable Convertible Hedging Question 5 (1 point) ACME Inc. (AI) is holding a bond that it purchased on the open market at the beginning of 2011 with a face value of $500,000. The bond which matures in 10 years pays interest annually at a rate of 6%. As the market rate at the time of purchase was only 5%, the bond was purchased for $538,610. At the 2010 year end, it was determined that the bond has been impaired; the bond which trades actively was trading in the bond market at $460,000 based upon the expected cash flows at year end. The bond is secured against one of the borrower's plants; at the 2011 year end the plant had a value of $450,000. During 2012 the company's prospects improved and by the 2012 year end the bond was trading at $540,000 and the value of the security had increased to $500,000. The company has not elected to measure any assets at fair value. Which of the following is the amount that would be reflected in income in the 2012 year, due to the appreciation of the bond in 2012? $0 $80,000 $72,317 $73,317 ni may annual interest