When the Interest Payment Dates of a Bond Are May

question 53

Multiple Choice

When the interest payment dates of a bond are May 1 and November 1,and the bond is issued on June 1,the amount of interest expense at December 31 of the year of issuance would be for

• A) two months.
• B) six months.
• C) seven months.
• D) eight months.

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Definitions:

Evaluate

To determine the significance, worth, or condition of something, usually by careful appraisal and study.

Collect Like Terms

The process in algebra of combining terms that have the same variables raised to the same power.

Simplify

To reduce a complex subject or issue to its most basic components or form.

Evaluate

To assess or determine the value, quality, importance, or effectiveness of something.