If bonds issued by a corporation are sold at a discount, is the market rate of interest greater or less than the contract rate?

Q: Why does the entire issue price of convertible bonds is recorded as debt?

A: A convertible bond is a type of bond that the holder can convert these bonds into a specified number…

Q: Why might a company choose to raise money through bonds, rather than take out a note payable or…

A: Bonds are the long-term liability of the company where the company raises the money in lieu of…

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: 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: What is the difference between financing a corporation with debt vs equity Provide an example of…

A: There are different sources of finance that a corporation can use for its business purpose when it…

Q: Which of the following is not a valid statement regarding bonds payable?    a. Bonds issued by an…

A: Solution: "The amortization of a bond premium increases both the recorded interest expense and…

Q: These are certificates that promise to pay a fixed rate of interest by a corporation or government…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When a company redeems bonds at a premium to carrying value, that activity is usually classified as:…

A: The company issued the bonds to raise funds in the company so that that funds can be utilized in the…

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: securities different from corporate b

A: Treasury securities and corporate bonds are both debt securities and promise to pay fixed return on…

Q: Compare and contrast corporate bonds with Government        bonds.

A: Bonds refer to the investment securities in which the money is lent by an investor to the company…

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: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

Q: When a company exercises its call provision on bonds, the company pays the book value of the bonds…

A: Call provision on the bond is the option held by the issuer for redeeming back the bonds if in case…

Q: Explain what a corporate bond is b. Outline the characteristics of the bond market d. Explain the…

A: A company can raise capital and secure financing through different mediums of debt and equity.…

Q: Discuss the effect if a company’s bond is downgraded.

A: Downgraded Bond: Credit rating agency are downgrading rating ofthe company's bond when their is risk…

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: how are convertible bonds measured initially on the balance sheet

A: Convertible bonds are a combination of Financial and Liability component. Therefore these are…

Q: A bond tends to pay a high interest rate if it isa. a short-term bond rather than a long-term…

A: Bonds are the financial instruments that are issued by various financial institutions for fixed time…

Q: unamortized premium

A: Any unamortized premium should be reported on the balance sheet of the issuing corporation as Answer…

Q: What is the advantage of issuing bonds instead of obtaining financing from the company’s owners?

A:

Q: When inflation increases, does that increase, decrease, or have no effect on the credit spread for a…

A: A credit spread is the difference in yield of a US Treasury security and the yield on a corporate…

Q: What are convertible bonds

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually, have a…

Q: How any company is taking tax advantage of bonds payable or any other fixed cost financing?

A: Bond can be considered as an I.O.U between the lender and the borrower that contains details about…

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: What is the difference between a corporate bond and a registered bond?

A: Introduction: Bonds are an example of a loan. It is similar to an IOU and so when you buy bonds, you…

Q: Under what conditions will it take on bank debt?

A: Debt financing happens while an enterprise increases cash by selling debt instruments to…

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

A: Definition: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: If a company sells its bonds at more than face value, the effective interest rate is a. less than…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: when are corporations likely they called the Bonds? A.  When the market interest rate is higher than…

A: The bonds are the financial instruments issued to raise money from the market.

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: :A dicount on bonds payable .Occurs when a corporation issues bonds with a stated rate more than the…

A: A discount on bonds payable is a contra liability account which represents unamortized discount on…

Q: What is the Yield To Maturity of Corporation A’s bond issue?

A: YTM is also called as yield to maturity. It is the expected rate to be earned by investor, by…

Q: Define each of the following terms:a. Bond; Treasury bond; corporate bond; municipal bond; foreign…

A: These are fixed-income securities that represent the loan given by the bondholders (the buyer of a…

Q: What is the difference between annuities and corporate bonds?

A: An annuity is a lump sum or a series of payments paid to someone on a periodic basis. In other…

Q: Most bonds: Select the correct response: give bondholders a voice in the affairs of the corporation…

A: Bond is a debt instrument issued by companies and government. It is a fixed income instrument which…

Q: Which of the following statements concerning bonds is FALSE? A. Bonds can be issued either at par,…

A: Bonds are issued by the corporates as measure to raise funds for the business. unlike shareholders…

Q: When are corporations likely to call their bonds?

A: They are many types of Bond, Generally the Bonds are Paid at the time of Maturity to the Bond holder…

Q: What is a bond?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: State the types of corporate bonds.

A: Bonds are basically corporate debt units that are issued and securitized as the tradeable assets by…

Q: Briefly describe the differences between inflation and Deflation. Briefly describe what Municipal…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: Describe corporate bonds and explain the taxadvantage of debt financing.

A: A corporate bond is a financial instrument issued by a corporation in order to raise funds for the…