9. if the bonds are intially sold at preminum and the straight line method of amortization is used, intrest expenses in the early years will_________

A. be more than it would have been using the effective intreast method

B. Be more than the intreast paid

C. be the same as what it woukd have been using the effective intrest method

D. Be less then what it would have been using the effective intrest method

10. Based on out discussions, which of the following is NOT one of the key pieces of information long term debt provides to managers, analysts and other stakeholders?

A. How cash might not be available for new opportunites

B.How liquid the company is

C. How risky the company is

D. How constraints have tied uo cash

11. How do we refer to the intrest rate earned by the company buying the bond?

A. Coupon rate

B. Market Rate

C. Stated Rate

Nominal Rate

12. Which of the following is true about if the bond sold at 103?

A. The market rate was less then the stated rate

B. The market rate was greater than the nominal rate

C. The market rate was greater than the Stated rate

D The market rate was equal to the stated rate