A Discount Bond

question 69

Multiple Choice

A discount bond:

• A)pays a variable coupon payment.
• B)has a market price in excess of face value.
• C)has a duration that is less than that required by an investor.
• D)has a par value that is less than $1,000.
• E)has a face value that exceeds the market value.

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Definitions:

Inventory Costing

A method used to assign costs to inventory items, which affects the cost of goods sold reported and the inventory's valuation on the balance sheet.

General Journal Entries

Accounting records that document all the financial transactions of a company, used to transfer information to the master ledger.

Raw Materials

These are the basic, unprocessed materials used in the manufacturing of goods, which may include metals, plastics, wood, or chemicals depending on the final product.

Production Department

The division within a company that is focused on the actual manufacturing or production of goods.