Acc 201 Chapter 10 Final exam

Acc 201 Chapter 10 Final exam - Know different names for...

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Chapter 10 Bonds How to calculate a schedule, what is a bond, advantages/disadvantages of bonds Bond : securities issue (sold) to the public (creditors) to meet large cash needs. Advantages: Tradable, Not diluted, Interest is tax deductible, Cheaper that borrowing Disadvantages: Interest and principle must be paid Debt to equity ratio Debt to equity ratio = Total Liabilities / Owners Equity
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Unformatted text preview: Know different names for principal and rate terms How to calculate: expenses, issuance price, premium, discount, per effective interest rate Market Rate = Contract Rate Par = $1000 Market Rate > Contract Rate Discount = $900 Market Rate < Contract Rate Premium = $1100...
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.

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