Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below.
1. All of the following are cash flows for a bond sale except
a. cash credited for what is received on the issuance.
b. interest payments made at specific periodic dates.
c. what is received on issuance and entered as a debit to Cash.
d. the repayment of the face value that occurs on the maturity date.
2. Which of the following statements is false?
a. Bonds can be issued for a price below or above the selling price.
b. Interest payments are always made monthly.
c. The par value is equal to 100% of a bond's face value.
d. The principal is repaid on the maturity date.
