Bonds are issued at their fair market value

True

False

The stated rate of interest is used to obtain the present value factors in the present value table.

True

False

The carrying value of a bond increases when the bond is sold at a discount.

True

False

Bonds are issued at their present value

Group of answer choices

True

False

If bond interest is paid semi annually and the bonds are 10 year bonds. The number of periods that will be used to find the present value factors is 20.

True

False

If the market rate of interest is 7% and the stated rate of interest is 8%, and the interest is paid semi annually. We use 3.5% to enter the present value tables.

True

False

Bonds are considered to be a current liability

True

False

The bond holders are considered to be creditors when they purchase the bonds from the company

True

False

We use the market rate of interest x the carrying value of the bonds to calculate the interest expense.

True

False