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Please match the following terms related to bonds to the correct description. The amount due at maturity The interest rate paid on the face value
Please match the following terms related to bonds to the correct description. The amount due at maturity The interest rate paid on the face value of the bonds 1. Secured Bonds 2. Convertible Bonds Specific assets of the corporation are identified as collateral for the bonds 3. Callable Bonds Convertible into common stock of the corporation 4. Face Value 5. Unsecured Bonds There are no specific assets identified as collateral for the bonds 6. Stated or contractual interest rate The corporation can require the bondholders to surrender the bonds When a corporation issues bonds it is making the following commitment(s) To repay the face value and interest at maturity To repay the cash proceeds at maturity To make periodic interest payments and to repay the face value at maturity To repay the face value at maturity To make periodic interest payments Please match the following the market interest rate equals the stated (contractual) interest rate 1. If bonds are issued at par the market interest rate exceeds the stated (contractual) interest rate 2. If bonds are issued at a premium 3. If bonds are issued at a discount the stated (contractual) interest rate exceeds the market interest rate Question 46 (0.3 points) If bonds with a face value of $500,000 are issued at 100, the cash proceeds that the company receives total $525,000 $500,000 $475,000 None of the answers is correct. Question 47 (0.3 points) If bonds with a face value of $500,000 are issued at 105, the cash proceeds that the company receives total $525,000 $500,000 None of the answers is correct. O $475,000 If bonds with a face value of $500,000 are issued at 95, the cash proceeds that the company receives total $500,000 $475,000 None of the answers is correct. $525,000 Question 49 (0.3 points) The journal entry required to issue bonds at a discount is Cash Discount on Bonds Payable Bonds Payable Bonds Payable Discount on Bonds Payable Cash Bonds Payable Discount on Bonds Payable Cash Cash Discount on Bonds Payable Bonds Payable
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