14. The excess of a bond's issue price over its face value is known as the: a. Discount b. Effective interest amount c. Coupon interest amount d. Premium e. None of the above 15. When the market interest rate is 10% and the coupon rate is 11%, a bond sells at: a. a discount b. a premium c. at par d. none of the above e. cannot be determined without more information 16. The spreading of the discount over the life of the bond is called discount amortization. a. True b. False 17. Which of the following would be classified as an operating activity on a statement of cash flows? a. purchase of inventory b. sale of another company's stock c. borrowing money through a promissory note d. payment of dividends e. purchase of a building All of the following activities would be included in a company's operating activities except: a. payments to employees b. payment to a local government for property taxes c. payment to suppliers d. payment to the bank to reduce loan balance e. payment to the landlord for rent 18. 19. All of the following would be included in a company's investing activities except a. taking out a loan from the bank b. purchase of equipment c. sale of another company's stock d. making loans to another company e. sale of a building