2. The price of a bond is generally determined by

a. the relation between the coupon rate and the current market rate of similar investments

b. the stated interest rate of the bond

c. how many bonds are issued

d. who buys the bonds

3. How is the consolidated statements treatment of constructive gain or loss on intercompany bond investments different from the treatment of unrealized profit on intercompany sales of inventory?

a. Constructive gain or loss is deferred until realized by transactions with outsiders

b. Unrealized profit s recognized immediately, before it has been recorded.

c. Constructive gain or loss is recognized immediately, before it has been recorded.

d. There is no difference in the treatment.

4. Which of the following is NOT an acceptable technique for allocating constructive gain or loss?

a. All to issuing company

b. All to purchasing company

c. Part to issuing company and part to purchasing company

d. All to S