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A corporation issued bonds in order to acquire cash. This transaction:
| | | a. Decreased the corporations revenue. |
| | | b. Decreased the corporations stockholders' equity |
| | | c.Increased the corporations stockholders' equity |
| | | d. Increased the corporation's liabilities |
The market value of a corporate bond will
| | | a. Increase if interest rates rise. |
| | | b. Decrease if interest rates rise. |
| | | c. Increase if the corporations financial condition weakens. |
| | | d. Increase if the rate of inflation increases. |
The semi-annual payments made by a corporation to investors who purchased its bonds are called:
| | | a. Interest payments |
| | | b. Dividend payments |
| | | c. Principal payments |
| | | d. Contributed capital |
| | | e. Par value |
A corporation issues 10 year bonds at a price of 96. This means that
| | a. | The bonds were issued for $960 per $1,000 bond. |
| | b. | The bonds pay 9.6% annual interest. |
| | c. | The bond's annual interest rate is 4%. |
| | d. | The bonds can be retired at $960 per $1,000 bond. |
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