QUESTION 3 A bond issuer assumes an obligation OA make periodic OB. redeem any b

Question

QUESTION 3 A bond issuer assumes an obligation OA make periodic OB. redeem any bonds at face value on demand from their owners. OC pay no cash or stock dividends while the bonds are outstanding. . D.All of the above answers are correct. to the purchasers to: at maturity QUESTION 4 D A its contract rate was lowe r than the prevailing market rate of interest on similar bonds D, the bonds were issued at a price greater than their face value. QUESTION 5 Bonds aimfer rom atock im al the roilowong wo B. bonds are debt and stock is ownership, D. bonds have maturity dates and stocks have indefinite lives

Explanation / Answer

3.) The option is D all the above options are correct as the bond issuer assumes an obligation to the purchaser to pay the interest and repay the principal at the time of maturity, Redeem any bonds at the face value on demand from their owners, pay no cash or stock dividend while the bonds are outstanding.

4.) the option is A ie., its contract rate was lower than the prevailing market rates on similar bonds. this is what it indicates about the bonds issued at discount on the date of issue.

5.) the option is C ie., bonds interest is deductible for tax purposes, dividends on a stock are not. bonds differs from stock except the above statement.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.