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Which of the following is not true of bonds issued at a premium? O a. The cash proceeds exceed the face amount of the bonds.
Which of the following is not true of bonds issued at a premium? O a. The cash proceeds exceed the face amount of the bonds. b. The amortization of bond premium decreases the interest expense. The amount of the Premium on Bonds Payable account is subtracted from the face amount of the bonds to determine the net liability reported in the balance sheet. The market rate was below the coupon rate. C d. O e Amortization of the premium decreases the carrying value of the bond. QUESTION 6 Which statement is true regarding zero coupon bonds? They provide cash interest payments during their life. a b. They are sold for more than the face or maturity value. The investor determines their market value at the issuance date by calculating the present value of OC. their maturity value, using the market rate of interest for bonds having similar terms and risks. They are also called callable debentures. Od. e. They are also called junk bonds
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