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A corporation issued bonds in order to acquire cash. This transaction: ...

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Finance

A corporation issued bonds in order to acquire cash. This transaction:

a. Decreased the corporations revenue.

b. Decreased the corporations stockholders' equity

c.Increased the corporations stockholders' equity

d. Increased the corporation's liabilities

The market value of a corporate bond will

a. Increase if interest rates rise.

b. Decrease if interest rates rise.

c. Increase if the corporations financial condition weakens.

d. Increase if the rate of inflation increases.

The semi-annual payments made by a corporation to investors who purchased its bonds are called:

a. Interest payments

b. Dividend payments

c. Principal payments

d. Contributed capital

e. Par value

A corporation issues 10 year bonds at a price of 96. This means that

a.

The bonds were issued for $960 per $1,000 bond.
b.

The bonds pay 9.6% annual interest.
c.

The bond's annual interest rate is 4%.
d.

The bonds can be retired at $960 per $1,000 bond.

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