2024 The value of a bond and debenture is mcq

The value of a bond and debenture is mcq

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WebDec 23, 2024 · Issue of Debentures Class 12 Accountancy MCQs Pdf Multiple Choice Questions Select the Best Alternate : 1. Debenture holders are : (CPT June, 2010) (A) Owners of the Company (B) Debtors of the Company (C) Creditors of the Company (D) Promoters of the Company Answer 2. Debentures represent the : (A) Long-term Borrowings of a Company WebAug 19, 2024 · MCQ Questions on Debentures 1. Debenture holders are (a) Debtors of the Company (b) Creditors of the Company (c) Debtors of the Company (d) Owners of the …

MCQ Questions for Class 12 Business Studies Chapter 10 …

WebSep 14, 2015 · Value of Bond & Debenture. Home >> Category >> Finance (MCQ) Questions and answers >> Management Accounting. Q. The value of a bond and debenture is. - … WebMay be Senior or Subordinated. Debenture. A (n) ___ is a bond that sells below par when market interest rate is above coupon rate- price falls so that the value (rate of return) of a … greg stone charleston wv

MCQ on Issue of Debentures MCQ on Redemption of Debentures …

WebSYBFM SEM -III DEBT MARKET 50 SAMPLE MCQs 1) A debt market is a part of the ____ market. a) Money b) Capital c) Cash d) Paper 2) _____ Rating is mandatory for issuing debentures publicly. ... _____ are issued and redeemed at face value, a) Plain bonds b) Floating bonds c) Fixed bonds ... c. Debenture d. Money Bondholder have____ risk. a. High … WebDebentures MCQ. Questions with Answers on Issue of Debentures: Ques. Debentures which have the charge on the property of the company is _____ (a) ... This is the interest rate that every debenture /bond carries on its face value and is fixed at the time of issue (a) current yield (b) coupon rate (c) market rate (d) none of the above View Answer. WebA bond traded at 102½ means that: A. The bond pays 2.5% interest. B. The bond traded at $1,025 per $1,000 bond. C. The market rate of interest is 2.5%. D. The bonds were retired at $1,025 each. E. The market rate of interest is 2 ½ % above the contract rate. B 77. Secured bonds: A. Are called debentures. B. fiche contact modèle

Corporate and Management Accounting MCQ - Learn Cram

WebSep 29, 2024 · The carrying value of a bond is the sum of its face value plus unamortized premium or the difference in its face value less unamortized discount. It can be calculated in various ways such as the ... Webequal to the face value of the bond divided by the conversion ratio. equal to the value at maturity. 6. A(n) is a bond that may be exchanged for common stock of the same corporation. exchangeable bond debenture convertible bond warrant 7. A warrant is a relatively option to purchase at a specified exercise price over a specified period of time ... gregston campbell fort worth txWebAug 30, 2024 · Issue & Redemption of Debentures – Corporate and Management Accounting MCQs Question 1. When face value of debentures is more than issue price then debentures are said to be issued at- (A) Premium (B) Discount (C) Par (D) None of above Answer: (B) Discount Question 2. Premium on issue of debentures must be treated as … greg stone facebook

"WebMar 28, 2024 · As mentioned above, the bond price is the net present value of the cash flow generated by the bond and can be calculated using the bond price equation below: {\rm bond\ price} = \sum_ {k=1}^ {n} \frac {\rm cf} { (1 + r)^k} bond price = k=1∑n (1 + r)kcf where: \rm cf cf – Cash flows; r r – YTM; and n n – Years to maturity. " - The value of a bond and debenture is mcq

The value of a bond and debenture is mcq

WebLot of MCQ questions chapter 07 interest rates and bond valuation chapter 07 interest rates and bond valuation multiple choice questions mary just purchased. 📚 ... B. face value. C. discount. D. call premium. E. yield. 2. Bert owns a bond that will pay him $75 each year in interest plus a $1,000 princi pal . WebMay 31, 2024 · When a bond matures, the bond issuer repays the investor the full face value of the bond. For corporate bonds, the face value of a bond is usually $1,000 and for government bonds,...

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WebCompute the after –tax cost of debenture. Ans. 10% Q10. Assuming that a firm pays tax at 50% rate, compute the after tax cost of debt capital in the following cases: a) A perpetual bond sold at par, coupon rate of interest being 7%; b)A 10 year, 8% Rs. 1,000 per bond sold at Rs. 950 less 4% underwriting commission. Ans. WebSep 1, 2024 · Financial Markets Class 12 MCQs Questions with Answers Question 1. Which one of the following is not a function of financial market? (a) Mobilisation of savings (b) Price determination of securities (c) Floating of companies (d) Lowering transaction cost Answer Question 2. Which one of the following is a money market instrument?

WebOct 6, 2024 · (A) The carrying amount of debentures gets reduced each year at a rate of 20%. (B) Issue price and the carrying amount of debentures are equal. (C) At the time of redemption, the debenture holder will be paid the issue price. (D) The face value and the carrying amount of debentures are equal. Answer: WebIf a warrant carries a right to buy one share of common stock and is exercisable at $20 per common share while the market price of a share is $30, the theoretical value of the …

WebJul 7, 2015 · Valuation of Bonds & Shares - MCQs with answers 1. The value of a bond and debenture is a) Present value of interest payments it gets b) Present value of contractual … WebThe value of a bond and debenture is A. Present value of interest payments it gets B. Present value of contractual payments it gets till maturity C. Present value of redemption …

WebDebentures MCQ Questions with Answers on Issue of Debentures: Ques. Debentures which have the charge on the property of the company is ______ (a) Secured (b) Unsecured (c) …

WebWhich of the following is an example of a depreciable asset? A. land. B. cash. C. account receivable. D. equipment. fiche contact salon modèleWebMacroMedia Inc. $1,000 par value bonds are selling for $1,265. Which of the following statements is TRUE? A) The bond market currently requires a rate (yield) less than the coupon rate. B) The bonds are selling at a premium to the par value. C) The coupon rate is greater than the yield to maturity. D) All of the above are true. D greg stone gateway churchWebQuestion: A debenture is: Multiple Choice The legal agreement between a bond's issuer and the bondholders. Unsecured debt which generally has a maturity of 10 years or more. A … fiche combustion 2910WebAug 12, 2024 · 20. A 12% debenture of nominal value of Rs. 100 has been issued at Rs.90 is said to be issued at .. (a) par (b) Premium (c) Discount (d) None of these. Also read : Concept of Goodwill mcqs with Solved answers 12 … fiche corebWebIt is secured by the faith and credit of the issuer. On January 1, 2024, Meister Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semiannually on June 30 and December 31. The bonds mature in 5 years. The bonds were issued at face amount. fiche corpoWebMay 31, 2024 · Bond valuation includes calculating the present value of a bond's future interest payments, also known as its cash flow, and the bond's value upon maturity, also … greg steve days of the weekWebSteve is offering to sell Bob a bond worth $50,000. The sales price of the bond is $60,000. The bond will have coupon interest payments of $7,000 for 10 years until it reaches … gregston nursing and rehab marlow ok