61.When the maturities of a bond issue are spread over several dates, the bonds are called
a.serial bonds
b.bearer bonds
c.debenture bonds
d.term bonds
62.The market interest rate related to a bond is also called the
a.stated interest rate
b.effective interest rate
c.contract interest rate
d.straight-line rate
63.If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of
a.equal to $500,000
b.greater than $500,000
c.less than $500,000
d.greater than or less than $500,000, depending on the maturity date of the bonds
64.When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at
a.a premium
b.their face value
c.their maturity value
d.a discount
65.The interest rate specified in the bond indenture is called the
a.discount rate
b.contract rate
c.market rate
d.effective rate
66.A legal document that indicates the name of the issuer, the face value of the bond and such other data is called
a.trading on the equity
b.convertible bond
c.a bond debenture
d.a bond indenture
67.Bonds that are subject to retirement prior to maturity at the option of the issuer are called
a.debentures
b.callable bonds
c.early retirement bonds
d.options
68.On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of $200,000. Thebonds are sold for $191,000. The bonds pay interest semiannually on June 30 and December 31 and the maturitydate is December 31, five years from now. Barton records straight-line amortization of the bond discount. Thebond interest expense for the year ended December 31 is
a. $10,900
b. $18,200
c. $21,800
d. $29,000
69.If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is
a. $1,080,000
b. $972,500
c. $1,000,000
d. $1,027,500
70.If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
a. $2,060,000
b. $2,000,000
c. $2,100,000
d. $1,940,000