If the Dollar Price of a Bond Is $4,000 and Its

question 128

Multiple Choice

If the dollar price of a bond is $4,000 and its face value is $4,250,the interest rate is equal to

• A) 5.9 percent.
• B) 5 percent.
• C) 6.67 percent.
• D) 6.25 percent.
• E) 10 percent.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.