Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A) If a bond is sold "at a discount," the effective interest rate on the bond is lower than the stated interest rate.
• B) If a bond is sold between interest dates, it is necessary to record the interest accrued since the last payment date before sale.
• C) If a bond is sold "at a premium," the effective interest rate on the bond is higher than the stated interest rate.
• D) Bond price of 98 means that the yield rate is 98% of the stated rate.

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Definitions:

E-learning

Electronic learning, which involves the use of electronic media and information and communication technologies in education.

Distance Learning

A method of studying in which lectures are broadcast or classes are conducted by correspondence or over the Internet, without the student needing to attend a school or college.

Analog Voice

The traditional method of transmitting voice information using continuous signals, differing from digital voice which uses discrete values for transmission.

Digitized

The process of converting information into a digital format, making it accessible and manipulable by computers.