dule item id 171044 1 0 1. Describe the two distinct obligations incurred by a corporation when issuing bonds. 2. Explain the meaning of each of the following terms as they relate to a bond issue: (a) convertible, (b) callable, and (c) debenture 3. What has the higher present value: (a) $10,000 to be received at the end of two years, or (b) $5,000 to be received at the end of each of the next two years? 4. If you asked your broker to purchase for you a 7% bond when the market interest rate for such bonds was 8%, would you expect to pay more or less than the face amount for the bond? Explain. 5. A corporation issues $7,500,000 of 8% bonds to yield interest at the rate of 7%. (a) was the amount of cash received from the sale of the bonds greater or less than $7,500,000? (b) Identify the following terms related to the bond issue: (1) face amount, (2) market or effective rate of interest, (3)