Which One of the Following Will Decrease the Current Yield

question 94

Multiple Choice

Which one of the following will decrease the current yield of a bond?

• A)increase in the face value
• B)change from semiannual to annual coupon payments
• C)decrease in the call premium
• D)decrease in the coupon rate
• E)decrease in the bond price

Distinguish between different types of transactions and their appropriate journal entries.

Grasp the concept of internal controls and their significance in accounting system design.

Appreciate the dynamic nature of accounting systems and their evolution in response to business needs.

Understand the basic concepts related to bonds and their interest rates.

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Definitions:

Risk of Loss

denotes the possibility that an asset or investment's value will decrease, reflecting the chance of losing on an investment or possession.

Contract Voided

A legal declaration that a contract is null and void and, therefore, unenforceable as though it never existed.

Partial Inability

A condition where an individual or entity is limited in some capacity but is not completely incapacitated.

Performance Impracticable

A doctrine under which a party may be released from a contract due to the occurrence of unforeseen events making performance impossible or extremely burdensome.