Accrued Interest on Bonds That Are Sold Between Interest Dates

question 9

Multiple Choice

Accrued interest on bonds that are sold between interest dates

• A) is ignored by both the seller and the buyer.
• B) increases the amount a buyer must pay to acquire the bonds.
• C) is recorded as a loss on the sale of the bonds.
• D) decreases the amount a buyer must pay to acquire the bonds.

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Definitions:

Ampacity

The maximum current-carrying capacity of a wire or device.

Conductor

A device or material that permits current to flow through it easily.

Circular Mil

An area measure of wire determined by squaring the diameter of the wire in mils (1 mil = 0.001 inch). Example: A wire with a diameter of 0.020 inch would have a circular mil area of 400 cmil (20 x 20 = 400).

Radius

A straight line from the center to the circumference of a circle or sphere.