If You Own a Bond That Is Called Under a Make-Whole

question 88

Multiple Choice

If you own a bond that is called under a make-whole call provision, you will be paid a call price which is

• A) Equal to the face value
• B) Equal to the par value plus the total amount of the remaining interest payments
• C) Approximately equal to the current value of the bond
• D) Based on the market value plus a call premium of a specified dollar amount
• E) Approximately equal to the future value of the bond at normal maturity

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Definitions:

Factory Personnel

Workers or employees involved in the production processes within a manufacturing facility or plant.

Unearned Ticket Revenue

Income received by a company for goods or services to be delivered or performed in the future; it is considered a liability until the service is performed or goods are delivered.

Adjusting Entries

At the close of a fiscal period, entries recorded to assign revenue and costs to the actual period of occurrence.

Advance Rent

Prepaid rent, which is an amount paid prior to the period to which it relates, often accounted for as a current asset until the period to which the rent applies.