Bonds Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond. To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

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Answer 1

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Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

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If bonds issue at a discount, is the stated interest rate less than, equal to, or more than the market interest rate? Explain.

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What is the difference between the stated interest rate andthe market interest rate on a bond?

Answer 2

Question

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

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Answer 3

Question

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

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Answer 4

Question

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

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Answer 5

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

Answer 6

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

Answer 7

Chapter 9, Problem 10RQ

To determine

Bonds

Bonds are a kind of interest bearing notes payable, usually issued by companies, universities and governmental organizations. It is a debt instrument used for the purpose of raising fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If selling price of the bond is lesser than the face value, it is known as discount on bond. If selling price of the bond is greater than the face value, it is known as premium on bond.

To Explain: If the bonds issued at premium, is the stated interest rate is less than or equal to or more than the market interest rate.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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Solution Summary: The author explains that bonds are interest bearing notes payable, usually issued by companies, universities, and governmental organizations. If the selling price of the bond is equal to its face value, it is known as discount on bond.

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