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Required: Circle the correct answer for each question Which elements of bonds are pre printed on the bond certificate and therefore are non Stated Interest

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Required: Circle the correct answer for each question Which elements of bonds are pre printed on the bond certificate and therefore are non Stated Interest rate, face value payment terms maturity date, purchase price Effective interest rate, payment terms, maturity date Stated interest rate, face value, payment terms, maturity date All elements are negotiable If an investor wants a determined end result, will he or she invest in bonds or in stocks? Stocks Bonds In a liquidation, who has higher rights to the corporation's assets: stockholders or bondholder Stockholders Bondholders Stockholders and bondholders have equal rights When bonds are issued, which Statement of Cash Flows activity is affected? Operating Investing Financing When bond interest is paid which statement of Cash Flows activity is affected? Operating Investing Financing When bonds are issued, does the quick ratio increase or decrease? Increase Decrease No effect

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