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ACC 304 WEEK 9 QUIZ 6
ACC 304 Week 9 Quiz 6 – STR NEW
ACC 304 Week 9 Quiz 6
All Questions Included.
1. Companies usually make bond interest payments semiannually, although the interest rate is generally expressed as an annual rate.
2. A mortgage bond is referred to as a debenture bond.
3. Bond issues that mature in installments are called serial bonds.
4. If the market rate is greater than the coupon rate, bonds will be sold at a premium.
5. The interest rate written in the terms of the bond indenture is called the effective yield or market rate.
6. The stated rate is the same as the coupon rate.
7. Amortization of a premium increases bond interest expense, while amortization of a discount decreases bond interest expense.
8. A bond may only be issued on an interest payment date.