When the Interest Payment Dates of a Bond Are May

question 53

Multiple Choice

When the interest payment dates of a bond are May 1 and November 1,and the bond is issued on June 1,the amount of interest expense at December 31 of the year of issuance would be for

• A) two months.
• B) six months.
• C) seven months.
• D) eight months.

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Definitions:

Focal Object

An entity or concept that is the primary focus of attention or analysis.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Primacy Effect

A perception problem through which an individual assesses a person quickly on the basis of the first information encountered.

Recency Effect

A perception problem through which we use the most recent information available to assess a person.