Week 2 DQ#2
How is the price determined for a bond? Explain.
The market price for a bond is determined by the current interest rates and the stated interest rate on
the bond. The market price of a bond has two parts: present value of the bonds face value
Week 2 DQ#1
A zero coupon bond pays no interest. Explain.
A zero coupon bond pays no interest; instead it offers a return in the form of a deep discount. Zero
coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors
Week 1 DQ #2
Banks sometimes loan cash under noninterest bearing notes. Is it true that banks lend money without
interest? What is your opinion?
Non-interest bearing notes, despite their name are actually notes that do not pay periodic interest;
A company issued 6%, 10-year bonds with a face amount of $65 million. The market yield for bonds of similar risk and mat
At what price did the bonds sell?
On January 1, a company issued 6%, 15-year bonds with a face amount of $100 mi
Week 1 DQ#1
What distinguishes current liabilities from long-term liabilities? Give at least one example of each.
Current Liabilities, defined, are liabilities that that are characterized as obligations payable within one
year, or within an organizations