Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment which of the following statement is true regarding the amount of bond interest revenue to be reported over life of the bonds? Group of answer choices The periodic amount of bond interest revenue will always be less than the periodic amount of cash received The periodic amount of bond interest revenue will always be above the periodic amount of cash received for interest The periodic amount of bond interest revenue will always be equal to the periodic amount of cash received The pattern of the periodic amt. of bond interest rev. is an increasing amount
Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment which of the following statement is true regarding the amount of bond interest revenue to be reported over life of the bonds? Group of answer choices The periodic amount of bond interest revenue will always be less than the periodic amount of cash received The periodic amount of bond interest revenue will always be above the periodic amount of cash received for interest The periodic amount of bond interest revenue will always be equal to the periodic amount of cash received The pattern of the periodic amt. of bond interest rev. is an increasing amount
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 26P
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8
Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment which of the following statement is true regarding the amount of bond interest revenue to be reported over life of the bonds?
Group of answer choices
The periodic amount of bond interest revenue will always be less than the periodic amount of cash received
The periodic amount of bond interest revenue will always be above the periodic amount of cash received for interest
The periodic amount of bond interest revenue will always be equal to the periodic amount of cash received
The pattern of the periodic amt. of bond interest rev. is an increasing amount
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