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After bonds have been issued, their market value can be expected to: 1 po Rise as any premium is amortized Fall as any discount
After bonds have been issued, their market value can be expected to: 1 po Rise as any premium is amortized Fall as any discount is amortized. Fall if interest rates rise. Rise if interest rates rise. Liabilities that fall due within one year or within the operating cycle are classified as current liabilities. * False True 1 po Nouveau Corporation purchased a piece of real estate, paying $300,000 cash and financing $600,000 of the purchase price with a 10-year, 15% installment note. The note calls for equal monthly payments that will result in the debt being completely repaid by the end of the tenth year. In this situation * 1 po Each monthly payment is greater than the amount of interest accruing each month. The aggregate amount of the monthly payments is $600,000. The portion of each monthly payment representing repayment of principal remains the same throughout the 10-year period. The portion of each payment representing interest expense will increase over the 10- year period, since principal is being paid off, yet the payment amount does not decrease. A disadvantage of the corporate form of organization is * tax treatment. ease of transfer of ownership. professional management. lack of mutual agency. ! This is a required question 1 po When bonds are issued at a discount, the borrower must pay more at maturity than the amount originally received * 1 po False True
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