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

question 218

Multiple Choice

Your company sells $50,000 of bonds for an issue price of $48,000.Which of the following statements is correct?

• A)The bond sold at a price of 96,implying a discount of $4,000.
• B)The bond sold at a price of 48,implying a premium of $2,000.
• C)The bond sold at a price of 48,implying a premium of $4,000.
• D)The bond sold at a price of 96,implying a discount of $2,000.

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Definitions:

Currency Values

The worth of different forms of money in terms of one another, impacting international trade and economics.

Punch List

A document detailing work that has not been completed according to agreement or that needs to be repaired before a project can be considered finished.

Owner

The individual or entity that holds the rights, responsibilities, and risks associated with an asset or project.

Quality Audit

An independent review and examination of a project or process to evaluate its conformity to established standards, policies, and procedures.