Which of the following statements is/are true? 1. If a $130,000 face value bond is issued...
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Which of the following statements is/are true? 1. If a $130,000 face value bond is issued at 120, the cash received will be $158,000. II. If a public company issued bonds at a discount, it indicates that the company has a poor credit rating. III. If the market rate is 7% and the stated rate is 4%, the bonds will sell at a discount. IV. If the market rate is 7% and the stated rate is 11%, the bonds will sell at a premium. Select one: Oa. Ill and IV b. I, III and IV O c. IV, only Od. I and IV e. All four statements are correct. Which of the following statements is/are true? 1. If a $130,000 face value bond is issued at 120, the cash received will be $158,000. II. If a public company issued bonds at a discount, it indicates that the company has a poor credit rating. III. If the market rate is 7% and the stated rate is 4%, the bonds will sell at a discount. IV. If the market rate is 7% and the stated rate is 11%, the bonds will sell at a premium. Select one: Oa. Ill and IV b. I, III and IV O c. IV, only Od. I and IV e. All four statements are correct.
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d I and IV I is true because the face value of the bon... View the full answer
Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
Posted Date:
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