Which of the Following Statements Is Correct

question 123

Multiple Choice

Which of the following statements is correct?

• A)Bonds are issued at a price calculated by using the present value of the stated rate of interest on the day the bond is purchased.
• B)If the face rate of interest on a bond is not equal to the market rate of interest,then the company desiring to issue the bonds must reprint its bond certificates.
• C)The actual issue price of a bond represents the present value of all future cash flows related to the bond.
• D)The market rate of interest has no bearing on the selling price of the bonds.

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Definitions:

Rights Vested

Refers to rights that are securely granted to an individual or entity, and cannot be revoked or amended without consent.

Modify or Rescind

To change, alter, or revoke an agreement or contract either partially or completely.

Incidental Beneficiary

A third party who unintentionally benefits from a contract but has no legal right to enforce the contract terms.

Intended Beneficiary

A person for whom a contract is specifically made, who has the right to enforce the terms of the contract, even though they are not a party to it.