If a Bond Is Quoted in the Newspaper at 105

question 115

Multiple Choice

If a bond is quoted in the newspaper at 105, what is its price?

• A) $1.05
• B) $10.50
• C) $105.00
• D) $1,000
• E) $1,050

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Definitions:

Fully Funded Pension Rights

A pension plan that has enough assets to meet all its obligations to retirees and current employees.

Pension Expense

The cost recognized by an employer for contributions to pension plans on behalf of its employees for the current period.

Salaries Expense

An account that represents the total amount paid to employees for services rendered during a specific period, usually before any deductions.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.