When calculating the market value of your bond, what calculations do you need to complete?

Question 1 options:

	Both present value of a lump sum and present value of an annuity
	Future value of an annuity
	Future value of a lump sum
	Present value of an annuity
	Present value of lump sum
	Both future value of a lump sum and future value of an annuity

Why might a company issue bonds as opposed to stock?

Question 2 options:

	To finance a large project
	To increase their ROE
	To change their ownership structure
	To get a tax deduction
	To avoid paying interest

When journalizing both bond interest payments and installment note payments, the numbers in the journal entry do not change.

Question 3 options:

	True
	False

When the coupon rate of a bond is higher than the market rate, the bond will sell for a discount.

Question 4 options:

	True
	False

You have an outstanding bond with a par value of $500,000 and a call premium (should we call the bond) of $5,000. The current carrying value is $502,000. You call the bond. What is your journal entry?