Your Company Sells $50,000 of Bonds for an Issue Price

question 74

Multiple Choice

Your company sells $50,000 of bonds for an issue price of $52,000.Which of the following statements is correct?

• A)The bond sold at a price of 52,implying a premium of $2,000.
• B)The bond sold at a price of 104,implying a discount of $2,000.
• C)The bond sold at a price of 52,implying a discount of $2,000.
• D)The bond sold at a price of 104,implying a premium of $2,000.

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Definitions:

Atomic Mass

The mass of an atom, typically expressed in atomic mass units (amu), representing the total number of protons and neutrons in the nucleus.

Synthesis Reactions

Chemical reactions in which two or more substances combine to form a new compound.

Catabolic Reactions

Catabolic reactions are metabolic processes that break down molecules into smaller units, releasing energy.

Emulsion

A stable mixture of two or more immiscible liquids, such as oil and water, often with an emulsifier to maintain stability.