122.What is meant by the "spread" in banking? What does the "spread" have to do with the issuance of bonds? 123.When the stated interest rate of a bond is lower than the market interest rate, will...

122.What is meant by the "spread" in banking? What does the "spread" have to do with the issuance of bonds?

123.When the stated interest rate of a bond is lower than the market interest rate, will the bond sell at a premium or at a discount?

124.What is the issue price of $100,000 in bonds that sell at 95.5?

125.When bonds are issued at a premium, which will be higher each year, the interest expense or the interest payment amount?

126.Show the effect on the accounting equation of the issuance of $100,000, 8% ten-year bonds at 103 ½.

127.If $400,000 of 12% bonds are issued at 101 ½, what amount of cash will be received by the corporation?