1- On the maturity date of a bond, its market value is totally different from its value at maturity, since the company must pay that amount to withdraw the bond "

True

False

QUESTION 3

The difference between the lowest price of a bond and its maturity value is:

Nominal

Discount

Cousin

Anticipation

QUESTION 4

More than just one interest rate is used for bonds. What are these and how do they differ from each other?

QUESTION 5

The companies must make the interest payments on the bonds either semi-annually or annually, as specified in the bond issuance certificate.

True

False

QUESTION 6

List three reasons why companies buy back (buy back) their own shares.

QUESTION 7

Treasury shares are reported as part of the Retained Earnings account in the companies' Balance Sheet.

True

False

QUESTION 8

- If a company buys its own shares, which accounts would we be affecting and in what way?

Assets decrease as cash is used to pay for shares but share account payable increases.

Assets increase when cash is received payable for shares but the account of shares payable increases.

Assets decrease when cash is used to pay for shares and total equity is decreased by the amount paid for the shares.

Assets decrease as cash is used to pay for shares but capital account in the hands of shareholders increases.

QUESTION 9

What effect does the issuance of shares have on the Capital account? Give an example.

QUESTION 10

Share dividends do not affect their issue value (nominal) or the number of shares issued.

True

False