ACTP 5007_MC questions chat 2

ACTP 5007_MC questions chat 2 - at thefaceinterestrate, a...

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If the market interest rate of a bond is less than  the face interest rate, then the bond is selling  at Please respond and click submit. a discount a premium face value non of the above The face interest rate is the rate that bonds pay their bondholder. When bonds pay higher interest than other similar  instruments in the market (the market rate), the issuer can sell the bonds at a premium because they are a better  investment at that point. Conversely, if bonds pay less interest than other similar instruments in the market, they must sell  at a discount in order to entice investors to buy them. A long-term liability is defined as an obligation  that will be paid Please respond and click submit. within one year or the operating cycle, whichever is shorter. in more than one year or the operating cycle, whichever is shorter. within one year or the operating cycle, whichever is longer
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This note was uploaded on 12/10/2009 for the course FAR 5745 taught by Professor Philoreily during the Spring '09 term at Nova Southeastern University.

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ACTP 5007_MC questions chat 2 - at thefaceinterestrate, a...

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