Your Company Sells $50,000 of Bonds for an Issue Price

question 69

Multiple Choice

Your company sells $50,000 of bonds for an issue price of $52,000.Which of the following statements is correct?

• A)The bond sold at a price of 52,implying a premium of $2,000.
• B)The bond sold at a price of 104,implying a discount of $2,000.
• C)The bond sold at a price of 52,implying a discount of $2,000.
• D)The bond sold at a price of 104,implying a premium of $2,000.

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Definitions:

Paracelsus

A Swiss physician and alchemist of the early Renaissance, regarded as the father of toxicology, who emphasized the importance of observation in medicine.

St. Vitus' Dance

A historical term for Sydenham's chorea, characterized by rapid, uncoordinated jerking movements most commonly affecting the face, hands, and feet.

Bodily Fluids

Liquids that are produced or present in the human body, essential for maintaining various bodily functions, including blood, saliva, and cerebrospinal fluid.

Paracelsus

A Swiss physician and alchemist in the Renaissance period, considered one of the fathers of modern toxicology and medicine.