For Which of the Following Types of Bonds Is Interest

question 77

Multiple Choice

For which of the following types of bonds is interest expense recognized each year even though no interest is paid?

• A)debenture bonds
• B)zero-coupon bonds
• C)serial bonds
• D)mortgage bonds

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Definitions:

Precautions

Protective measures taken in advance to reduce the risk of harm or error.

To-Be-Chosen Option

The alternative or solution that is selected or decided upon after consideration.

Promising Option

An alternative or choice that shows potential for success or a favorable outcome based on early indicators or theoretical advantages.

Fortifying

The act of strengthening or reinforcing something to make it more secure or robust.