A Bond Premium

question 95

Multiple Choice

A bond premium:

• A)arises when interest payments are higher than the cost of borrowing.
• B)is essentially free money.
• C)arises when the interest payments are less than the cost of borrowing.
• D)is reported on the income statement as a gain on the issuance of a bond.

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Definitions:

Nintendo

A multinational consumer electronics and video game company headquartered in Japan, known for creating some of the most popular gaming franchises.

Wii

A home video game console released by Nintendo, known for its innovative motion-sensing controller.

Leisure

Time spent away from work and duties, where one is free to indulge in activities for relaxation or pleasure.

Recreation

Any satisfying, amusing, and stimulating activity that is experienced as refreshing and renewing for body, mind, and spirit.