These are certificates that promise to pay a fixed rate of interest by a corporation or government at the end of certain time. * Bonds O Stocks O Dividend

Q: A corporation recognizes a gain or loss O only when bonds are converted into common stock. when…

A: Redemption of Bond: When interest rates fall dramatically, bond issuers are forced to redeem their…

Q: In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust…

A: Bond: It acts between any investor and a company like a loan.

Q: The cash interest payment a corporation makes to its bondholders is based on

A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows to…

Q: 1. In equity financing, the corporation is required to distribute dividends to its stockholders on a…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Which of the following are differences between a bond and a common​ stock? ​(Select all that​…

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: If you own a company what you prefer to issue ordinary shares or bonds, explain why?

A: Shares of a company represent the ownership, and a shareholder is considered an owner of the company…

Q: Stock can be issued for all except which of the following? - state income tax payments  - accounts…

A: Stock can be issued for the payment of dues, in lieu of services, or any exchange of goods but firm…

Q: Which property is valued using the book value?    Bonds being traded in the bond market Annuity…

A: Book value is companies net difference between total assets and total liabilities.  Book value is…

Q: For a corporation, what are theadvantages of corporate bondsover long-term loans?

A: Bonds are a type of debt which is issued by the company  or the government. It is long term debt on…

Q: 1. Anton wants to have a portion of ownership of a certain company. Which of the following should he…

A: Hi student Since there are multiple questions, we will answer only first question.  There are…

Q: How a company takes tax advantage of Bonds Payable (or any other fixed cost financing)?

A: Giving securities is one path for organizations to fund-raise. A bond capacities as a credit between…

Q: Bonds which permit the bondholder to convert the bonds into shares of stock are called: Select one:…

A: AS THE NAME SUGGESTS , THE CONVERTIBLE BONDS ALLOW THE OWNER THE OPTION TO CONVERT BONDS INTO A…

Q: Marketable securities include investments in bonds and in the capital stocks of publicly traded…

A: Marketable securities are shown as current assets in the balance sheet of the company and cash flow…

Q: Answer by True or False 1.person issued with corporate bond is a creditor to the corporation…

A: stock corporation are those profit organisation that issues talk to shareholder for raising their…

Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…

A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…

Q: When a company retires bonds early, the gain or loss on the retirement is the difference between the…

A: Formula: Maturity value = Bond Face value +  Interest

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A: Bonds payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: Equity instruments include all of the following, except * A. Preference shares B. Corporate bonds…

A: There are two types of instruments which can be issued by an organisation to raise the fund. These…

Q: Write a detailed note on Corporate Bonds.

A: Bond is the debt instrument which is securitized as tradeable assets. It is kind of fixed income…

Q: Corporate bonds that can be exchanged for shares of the corporation’s common stock ifcertain…

A: Corporate bond: It can be defined as a debt security, usually issued by the public or private…

Q: Debt securities sold to investors that must be repaid at a particular date in the future

A: ANSWER   Debt securities sold to investors that must be repaid at a particular date in the future is

Q: Most companies pay current liabilities Select one: a. out of current assets. b. by issuing…

A: Current liability: Current liability refers to any form of liability of the organization for a term…

Q: 6. This is a financial security that evidences your right to be paid with interest and principal…

A: A financial security is a tradable financial asset. Bonds, preference and common shares, derivatives…

Q: When bonds are issued by a company, the accounting entry typically shows an increase in a.assets…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: capital marke

A: common stock and corporate bonds are traded in capital market.  capital market is a place where…

Q: Assume that the return on tax-exempt securities is 0.09 and that tp = 0.3, tg = 0.15, and te = 0.35,…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you.  If you…

Q: A corporate bond is a long-term debt instrument indicating that a corporation has borrowed a certain…

A: Long-term debt refers to debt obligations with a maturity of more than one year. Long-term debt is a…

Q: The cash interest payment a corporation makes to its bondholders is based on ________.A. the market…

A: Bondholders is the amount of liability or obligation in form of bonds or debentures of the company.…

Q: When the conversion of bonds payable to common stock is recorded under the market value method and…

A: Journal entry will be - bonds payable debit…

Q: Which of the following statements about the characteristics of debt and equity is true? a. All of…

A: Introduction:- Equity:- Equity means company collection of funds in the form of shares. equity…

Q: Which of the following is not a capital market instrument? a. Corporate stock b. Mortgages c.…

A: A capital market is a marketplace for financial investments that are either direct or indirect…

Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

A: Treasury stocks are the shares which are reacquired by the company that are already issued to the…

Q: 5. If bonds issued by a corporation are sold at a discount, is the market rate of interest greater…

A: The corporation can issue the bond at discounts or premiums as per the market conditions and…

Q: When a corporation pays dividends, the three relevant dates for dividends occur in this order: a.…

A: Record date is the date basis which the shareholders are identified for dividend payment. date of…

Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A…

A: Solution Concept As per the relevant accounting standard Financial liability is…

Q: State law may required that capital stock have which of the following values? a. computer software…

A: Capital stock is stock that includes common stock and preferred stock and is authorized and issued…

Q: The date on which a cash dividend becomes a binding legal obligation is the Group of answer choices…

A: The portion of the company's profit distributed among the shareholders or investors of the company…

Q: A fixed-income security is defined as. A) a debt obligation that pays a fixed rate of return for a…

A: A fixed income security is security which pays fixed income whatever the condition may be

Q: (a) From what sources might a corporation obtain fundsthrough long-term debt? (b) What is a bond…

A: (a)A corporation might obtain funds through long-term debt through the following sources: 1. Bonds…

Q: Equity securities acquired by a corporation which are accounted for by recognizing unrealized…

A: When some investments are made in some other company or corporation, then it depends on the quantum…

Q: Times interest earned is A) The number of times the interest on a bond issue is covered by operating…

A: Times interest earned is basically the the operating profit of the the firm which is divided by the…