Chapter 14 Homework - C hapter 14: Long-Term Liabilities...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14: Long-Term Liabilities Tiffany Watt Homework January 31, 2011 AC 302 – 01 Questions 3) Distinguish between the following interest rates for bonds payable: a. Yield rate – The actual interest rate earned by the bondholders. b. Nominal rate – The interest rate written in the terms of the bond indenture. The issuer of the bond sets this rate. c. Stated rate – An alternate term for the nominal rate. d. Market rate – An alternate term for the yield rate. e. Effective rate – An alternate term for the yield rate. 4) Distinguish between the following values relative to bonds payable: a. Maturity value – The face value of the bond that the issuer must pay back at maturity. b. Face value – An alternate term for maturity value. c. Market value – The price at which the bond can be sold in an open market. d. Par value – An alternate term for the maturity value. 5) Under what conditions of bond issuance does a discount on bonds payable arise? Under what conditions of bond issuance does a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

Page1 / 6

Chapter 14 Homework - C hapter 14: Long-Term Liabilities...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online