Ordinarily, the Proceeds from the Sale of a Bond Issue

question 76

Multiple Choice

Ordinarily, the proceeds from the sale of a bond issue will be equal to:

• A) The face amount of the bond.
• B) The total of the face amount plus all interest payments.
• C) The present value of the face amount plus the present value of the stream of interest payments.
• D) The face amount of the bond plus the present value of the stream of interest payments.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation and presentation of financial statements on a global scale.

GAAP Format

The presentation of financial statements in accordance with Generally Accepted Accounting Principles, ensuring consistency and comparability.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.

Property Plant

Property, plant, and equipment (PP&E) are tangible fixed assets used in the production or supply of goods and services, minus accumulated depreciation.