A Bond Issue with a $100,000 Par Value,an 8% Annual

question 142

True/False

A bond issue with a $100,000 par value,an 8% annual contract rate,with interest payable semiannually and a 10-year life means that the issuer must repay $100,000 at the end of 10 years plus make 20 payments of $4,000.

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Definitions:

Canadian Dollars

The official currency of Canada, often symbolized as CAD.

Translation Gain/Loss

The gain or loss resulting from the conversion of financial statements from one currency to another for consolidation purposes.

Cumulative Translation Gains/Losses

The aggregate change in the value of a foreign entity's equity due to differences in exchange rates over time, recognized in the accumulated other comprehensive income section of equity.

British Pound Sterling

The official currency of the United Kingdom, which is one of the world's major currencies traded on foreign exchange markets.