A warrant gives the owner: a) the obligation to sell securities directly to the firm at a fixed price for a specified time. b) the obligation to purchase securities directly from the firm at a fixed price for a specified time. c) the right to purchase securities directly from the firm at a fixed price for a specified time. d) the right to sell securities directly to the firm at a fixed price for a specified time e) None of the above

To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s    refers to the interest payment or payments paid by a bond. • A bond issuer is said to be in    if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called    . • A bond’s    gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.   Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00   What is the issuing date of this bond? 7-15-2005   7-15-2055…

27. If a long-term bonds becomes callable due to the violation of a debt covenant Group of answer choices a. The debt may continue to be classified as long term if the entity believes the covenant can be renegotiated. b. The debt must be reclassified as current. c. Cash must be reserved to pay the debt. d. Retained earnings must be restricted in the amount of the debt.

Available-for-sale securities are securities that management expects to sell in the future, but not in the near term. True False

What are the two possible methods for reporting EPS when warrants and convertiblesare outstanding?

What causes a gain or loss on the sale of a bond investment? Group of answer choices when the selling company negotiates a better price when the selling price of the bond differs from the book value (cost) of the bond when the selling company has unamortized discounts when the selling company has unamortized premiums