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14) Which of the following statements about corporate bonds is NOT correct? Choose the right answer below? The outstanding balance is used in the calculation

14)

Which of the following statements about corporate bonds is NOT correct?

Choose the right answer below?

  1. The outstanding balance is used in the calculation of interest expense.
  2. The stated (coupon) rate of interest is used in the calculation of the cash interest payments.
  3. The stated (coupon) rate of interest is used in the calculation of interest expense.
  4. The face value is the amount due at the maturity date of the bond.

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