The amount loaned when a bond is issued is a. the principal. b. the dividend. c. its maturity. d. its par value.

Q: A bond is like a loan. The issuer is the borrower, the holder is the lender and the coupon is the O…

A: The bond is the financial instrument used to raise money from the market.

Q: The date on which the principal amount is repaid to the bond holder is known as the?

A: One of the most common sources of arranging the finance used by the business entity is to issue…

Q: How to record bonds selling at discount, premium, and at par. Why are bonds recorded at discount,…

A: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and discount.…

Q: ._______ The deposits are used for redeeming a bond issue.

A: Following is the answer to the question.

Q: Premium on Bonds Payable is a(n) a. valuation account b. contra account c. accumulation account d.…

A: Premium on bonds payable : Premium on bonds payable arises when bonds payable are issued for an…

Q: he amortization of premium on bonds payable will _____________ the net income.

A: Net Income:-  Net income is also considered as the net earnings and net profit of the business that…

Q: The face value of a bond is O a. The amount payable at the maturity date. O b. The amount used to…

A: Face Value of Bond The face value or face amount of a bond payable is the amount printed on the…

Q: . How is the value of a bond determined?

A: Bond valuation: It may be a method utilized to decide a given bond's hypothetical reasonable value.…

Q: How should discount on bonds payable be reported on the financial statements? Premium on bonds…

A: Concept: A premium on bonds occurs if, the bonds are issued at a high price than the face value. On…

Q: When a bond is issued, what is its present value?

A: The present value of the bond is the total of the present value of the bond's interest payments that…

Q: On the maturity date of a bond​ investment, the journal entry includes​ ________.   A. a debit to…

A: The held-to-maturity debt investment account is classified as long-term investment account. The…

Q: interest payment for bonds is calculated using the face value of the bonds and the __________   A.…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: What is the principal repayment for a bond

A: There are two components principal and interest

Q: a) the price of each bond b) the duration of each bond c) the convexity of each bond

A: Duration: It measures the change in price when the interest rates change. Hence, interest rate risk…

Q: How is the present value of a bond calculated?

A:

Q: How is the price of a bond (or bond issuance) determined?

A: solution concept coupon rate of bond               The coupon rate of the bond is the stated…

Q: What formula is used to compute the amount of the cash interest payment on Bonds Payable? Multiple…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: Explain why bonds are issued and identify the types of bonds?

A: Bonds are one method for corporations to generate funds. The investor undertakes to contribute the…

Q: Explain face amount, discount, and premium relating to bond issuance.

A: Face value is also known as par value. Face amount of bond issuance is the amount on which coupon…

Q: 10. The bond interest expense reflected on the income statement should reflect an amount based on…

A: The bond interest expense reflected on the income statement should reflect on amount based on the…

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Is it possible that a bond is reported in multiple places on the balance sheet? If yes, explain.

A: In finance, a bond is an instrument or document of indebtedness of the bond issuer to the holders.…

Q: Define capital gains yield (on a bond)

A: The formula to compute capital gain yield as follows:

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: The accrued interest on a bond is calculated by taking the fraction of the coupon period that has…

A: A bond is a financial security issued by large business firms to raise borrowing capital. A bond…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: Identify the term being referred to: A type of bond that requires a portion of the face amount be…

A: The type of bond that pays off a portion of face value periodically includes a proportionate payment…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: The interest rate stated on the bond is known as: (a) effective rate. (c) nominal rate. (b) market…

A: solution : The interest rate stated on the bond is known as: Correct answer is option c) nominal…

Q: What type of account is Discount on Bonds Payable? What is its normal balance? Is it added to or…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: The journal entry a company makes for the payment of interest, interest expense, and amortization of…

A: Journal entries are passed following the golden rules of accounting. Debit all assets and expenses…

Q: Describe how a new bond issue with warrants is valued.

A: Companies issues bonds with warrants because they want to decrease the cost of funding, so they…

Q: When bonds are purchased between interest dates, the accrued interest should be a. debited to the…

A: Accrued Interest It is the unpaid interest  which is earned by a bondholder  since last interest…

Q: ecarrying (book) value of a bond at the time when it is issued is always equal to its par valu True…

A: A bond may be issued at Par, at a premium or at discount. If the coupon rate of bonds is equal to…

Q: When a bond is first issued, it is sold at a. any of these. b. discount. c. face value. d.…

A: Bonds, when issued first, are issued at the face value but such bonds can be sold at both below the…

Q: link between the price of bonds and the rate of interest?

A: There is a inverse relationship between price of bonds and rate of interest.  If interest rate…

Q: The carrying value of Bonds Payable equalsa. Bonds Payable plus Discount on Bonds Payable.b. Bonds…

A: Answer:   Option b

Q: The carrying value on bonds equals Bonds Payablea. minus Premium on Bonds Payable.b. plus Discount…

A: Answer: d. minus Discount on Bonds Payable.

Q: Select one: a. Bonds issued at a premium are redeemed for the amount of cash originally received b.…

A: Solution Concept The bond is issued at discount when                 -the coupon rate is less than…

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round

A: Bond is an instrument that carries fixed coupon payment with them. These are issued to those…

Q: The bond interest expense for a period is more than interest paid when bonds are sold at O A. A…

A: "Since you have asked multiple questions, we will solve first question for you. Of you want any…

Q: Determine the selling price of the bonds

A: The selling price of the bonds is the present value of the cash payments to be made during the life…