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8. Which of the following is a compensated absence? A) Sick days B) Vacation days C) Holidays D) All of the above 9. Company A
8. Which of the following is a compensated absence? A) Sick days B) Vacation days C) Holidays D) All of the above 9. Company A had a net income of $1,600, interest expense of $90 and income taxes of $700 Their "times interest earned" ratio is: A) 2.29 B) 26.56 C) 25.65 D) 19.81 10. The market rate on a bond is the same as the effective rate A) True B) False 11. How does a company that has issued bonds calculate interest expense (assuming the stated rate and the market rate are not the same)? A) Stated rate times carrying value of the bonds B) Market rate times carrying value of the bonds C) Stated rate times face value of the bonds D) Market rate times face value of the bonds 12. If a bond has a stated rate of 6% and the market rate is 8%, the bond will sell at A) A discount B) Par C) A premium 13. A secured bond is one that: A) Matures in installments B) is registered in the name of the holder C) is issued with a deep-discount D) is backed by collateral 14. What rate is used to calculate the present value of a bond? A) Stated rate B) Coupon rate C) Nominal rate D Market rate E) None of the above
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