1) Long-term debt includes all of the following EXCEPT:

A. Unsecured notes

B. Notes secured with collateral

C. Mortgages

D. Bonds

E. Leases

F. Not applicable, all of the above are examples of long-term debit

2) Short-term debt refers to:

A. Money that the organization has just borrowed

B. Money that must be repaid at some time in the next 12 months

C. Money that has to be repaid at some time after the next 12 months

D. A form of debt that only requires the repayment of interest during the coming year 3) The present value of a bond is determined based on:

A. The bonds stated interest rate

B. The future value of the bonds terminal value

C. The prevailing market interest rate

D. None of the above

4) If interest rates rise, the prices for outstanding bonds will:

A. Fall

B. Rise

C. Increase but then decrease back to the original value of the bond

D. Remain unchanged, bonds pay a fixed rate of interest regardless of the market interest rate

5) Interest payments on bonds that make periodic, semiannual interest payments are calculated by:

A. Multiplying the par or face value of the bond times the prevailing market interest rate.

B. Dividing the coupon rate by the number of coupons in a year and multiplying by par or face value of the bond.

C. Both of the above

D. Neither of the above