When a Bond Has a Par or Face Value of $1,000

question 30

True/False

When a bond has a par or face value of $1,000 and a 6 percent coupon rate,the semi-annual payment would be $60.

---

Definitions:

FVE Method

Refers to the Fair Value Evaluation method, a technique for assessing an asset's worth at its current market value.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Equity Method

An accounting technique used by a company to record its investment in another company where it has significant influence but not full control, usually through the ownership of 20-50% of the voting stock.

Investment Revenue

Income earned from various forms of investments like stocks, bonds, and real estate properties.