Finance

1 The carrying (book) value of a bond at the time when it is issued is always equal to its par value T/F

2 Foreign exchange rates fluctuate due to changes in :
Select one: a Political conditions b Economic conditions c Supply and demand for currencies d Expectations of future events e All of these

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3 A 10-year bond issue with a $100,000 par value, 8% annual contract rate, with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4,000 each T/F

4To provide security to creditors and to reduce interest costs, bonds and notes payable can be secured by:
Select one: a Safe deposit boxes b Mortgages c Equity d The FASB e Debentures

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