8. A bond with a face value of $10,000 has a current price quote of 102.62. The price in dollars and cents is
a. $10,002.62.
b. $10,200.62.
c. $10,026.20.
d. $10,262.00.
9. Bonds that contain a provision that allows the issuing corporation to buy back the bonds prior to the
maturity date are called
a. secured bonds.
b. callable bonds.
c. convertible bonds.
d. debenture bonds.
10. When bonds are sold at face value between interest dates, the result is a debit to the Cash account that
a. equals face value.
b. depends on the circumstances.
c. is less than face value.
d. exceeds face value.
11. All of the following are advantages of issuing bonds rather than stock except
a. financial leverage.
b. payment of bond interest is not required
c. bond interest is tax-deductible.
d. bondholders do not have voting rights.
12. Bonds that mature in installments are called
a. term bonds.
b. debenture bonds.
c. zero coupon bonds.
d. serial bonds.
13. An unsecured bond is the same as a
a. term bond.
b. zero coupon bond.
c. debenture bond.
d. bond indenture.
14. Debenture bonds are
a. bonds that have a single maturity date.
b. bonds secured by specific assets of the issuing corporation.
c. issued only by the federal government.
d. issued on the general credit of the corporation and do not pledge certain assets as
collateral.