Which of the Following Statements Is Incorrect

question 33

Multiple Choice

Which of the following statements is incorrect?

• A)The market rate of interest was less than the coupon rate of interest on July 1, 2016.
• B)The interest expense during the life of the bonds is $3,000 less than the cash interest payments during the life of the bonds.
• C)The book value of the bond liability decreases by $300 per year.
• D)The semi-annual interest expense is $300 less than the semi-annual interest payment.

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Definitions:

Premise

An initial statement or proposition from which conclusions are drawn or arguments are based.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources in a competitive context.

Structure

The arrangement or organization of interrelated elements in a material object or system, or the organization of parts as dominated by the general character of the whole.

Bureaucratic

Relating to a system of government or organization that is managed by departments staffed with non-elected officials, often criticized for excessive procedural complexity.