A Basic Bond That Has a Face Value of $1,000

question 95

Multiple Choice

A basic bond that has a face value of $1,000 and pays regular semiannual coupon payments is referred to as which one of the following?

• A)pure discount bond
• B)premium bond
• C)inflation bond
• D)straight bond
• E)conversion bond

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Definitions:

Merchandising Company

A business entity that purchases finished products and sells them to consumers without changing the form or nature of the goods.

Service Company

A business that generates revenue through the provision of services rather than selling physical products.

Sales Returns And Allowances

Transactions where a customer returns goods to the seller or receives a reduction in the invoice price, thereby reducing the seller's sales revenue.

Sales Discounts

Reductions in the amount charged to customers as an incentive for early payment, recorded as a deduction from gross sales to calculate net sales.