Bonds that are subject to retirement at a stated dollar amountprior to maturity at the option of the issuer are called

a. callable bonds.

b. early retirement bonds.

c. options.

d. debentures.

If the market interest rate is 5%, a $10,000, 6%, 10-year bondthat pays interest annually would sell at an amount

a. less than face value.

b. equal to face value.

c. greater than face value.

d. that cannot be determined.

Horton Company purchased a building on July 1 by signing along-term $480,000 mortgage with monthly payments of $4,400. The mortgage carries an interest rate of 10%. The amount owedon the mortgage after the first payment will be

a. $480,000.

b. $479,600.

c. $476,000.

d. $475,600.

The 2017 financial statements of Marker Co. contain thefollowing selected data (in millions).

Current Assets	$ 75
Total Assets	140
Current Liabilities	40
Total Liabilities	90
Cash 8 The debt to assets ratio is a. 64.3%. b. 53.3%. c. 28.6%. d. 147.4%.

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