What are the three different amounts at which a bond can be issued? In each of these cases indicate which interest rate is higher - the contract rate or the yield rate.

		Amounts at issue		Which is higher?
1)		At a DiscountAt a PremiumAt Effective RateAt Interest RateAt Par		ContractEffectiveEqualYield
2)		At a DiscountAt a PremiumAt Effective RateAt Interest RateAt Par		ContractEffectiveEqualYield
3)		At a DiscountAt a PremiumAt Effective RateAt Interest RateAt Par

ABC Co. financial data for 2020 & 2019 are given below:

		2020		2019
Total Assets		$923,000		$869,000
Total Liabilities		653,000		547,000
Cash		35,000		36,500
Interest-bearing Debt		535,000		375,000
Net Income		169,000		136,000
Interest Expense		8,900		6,600
Tax Expense		15,900		18,800
Depreciation Expense		54,500		35,500

Calculate the debt to equity ratio and the interest coverage ratio using the select financial data provided above for 2019 & 2020. (Round answers to 2 decimal places, e.g. 15.25.)

		2020			2019
Debt to Equity Ratio
Interest Coverage Ratio			times			times

Is ABC Corp.s leverage improving or deteriorating?

ABC Corp.s leverage is deterioratingimproving.

Is its ability to service its long-term debt improving or deteriorating?

Ability to service its long-term debt is improvingdeteriorating.