The interest rate written in the terms of the bond indenture is known as the
a. coupon rate.
b. nominal rate.
c. stated rate.
d. coupon rate, nominal rate, or stated rate.
Answer: coupon rate, nominal rate, or stated rate
Learn More :
Accounting Chapter 14
- The debt to total assets ratio is computed by dividing
- The times interest earned ratio is computed by dividing
- Note disclosures for long-term debt generally include all of the following except
- Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements?
- Long-term debt that matures within one year and is to be converted into stock should be reported
- When a business enterprise enters into what is referred to as off-balance-sheet financing, the company
- Which of the following is an example of "off-balance-sheet financing"?
- Discount on Notes Payable is charged to interest expense
- When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless
- When a note payable is issued for property, goods, or services, the present value of the note is measured by
- A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. When such a transaction takes place
- A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation?
- "In-substance defeasance" is a term used to refer to an arrangement whereby
- The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as
- An early extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates. At the time of reacquisition
- Treasury bonds should be shown on the balance sheet as
- The printing costs and legal fees associated with the issuance of bonds should
- Theoretically, the costs of issuing bonds could be
- When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be
- If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a
- When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will
- Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to
- If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will
- Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that
- Fox Co. issued $100,000 of ten-year, 10% bonds that pay interest semiannually. The bonds are sold to yield 8%. Another step in calculating the issue price of the bonds is to
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.