State whether each of the following statements is true or false. _______ 1. Mortgage bonds and sinking

Question:

State whether each of the following statements is true or false.

_______ 1. Mortgage bonds and sinking fund bonds are both examples of debenture bonds.

_______ 2. Convertible bonds are also known as callable bonds.

_______ 3. The market rate is the rate investors demand for loaning funds.

_______ 4. Annual interest on bonds is equal to the face value times the stated rate.

_______ 5. The present value of a bond is the value at which it should sell in the market.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...