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Kiawah Corp. sold bonds at a price of 96.2 plus accrued interest. At the time of this issuance, the carrying value of the bonds would be less than: Face Value of the Bonds : Cash Received by Kiawah
(ignore fees)
A. No : Yes
B. Yes : Yes
C. Yes : No
Answer: B
Explanation:
Since the carrying value (face value less discount) at issuance is equal to the purchase price, the carrying amount would be less than both the face value (price of 100) and the cash received since the latter includes accrued interest.
NEW QUESTION: 2
Which of these is part of mission critical substation?
A. physical access (deny access)
B. workstation email
C. fault detection and restoration
D. physical security alarm
Answer: C
NEW QUESTION: 3
Total portfolio risk is __________.
A. Equal to systematic risk plus diversifiable risk
B. Equal to systematic risk plus non-diversifiable risk
C. Equal to systematic risk plus unavoidable risk
D. Equal to avoidable risk plus diversifiable risk
Answer: A
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