If the market rate of interest is 15 percent and the bond interest rate is 10%, the bonds will sell at a _______________. If a bonds interest rate is 10 % and the market rate is 8 %, the bonds will sell at a ______________. In computing the carrying amount of a bond, unamortized _____________ is subtracted from the face value of the bond. In computing the carrying amount of a bond, unamortized _______ is added to the face value of the bond. If a bond sells at a _____________, an amount more than the face value of the bond is received on the date of issuance. If a bond sells at a ____________, an amount less than the face value of the bond is received on the date of issuance.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6FPE
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  1. If the market rate of interest is 15 percent and the bond interest rate is 10%, the bonds will sell at a _______________.
  2. If a bonds interest rate is 10 % and the market rate is 8 %, the bonds will sell at a ______________.
  3. In computing the carrying amount of a bond, unamortized _____________ is subtracted from the face value of the bond.
  4. In computing the carrying amount of a bond, unamortized _______ is added to the face value of the bond.
  5. If a bond sells at a _____________, an amount more than the face value of the bond is received on the date of issuance.
  6. If a bond sells at a ____________, an amount less than the face value of the bond is received on the date of issuance.
 
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