6.When the effective interest method is used to account for notes, the dollar amount of interest will increase or decrease throughout the maturity period. Explain why. 7.What are 'off-balance sheet...

6.When the effective interest method is used to account for notes, the dollar amount of interest will increase or decrease throughout the maturity period. Explain why.

7.What are 'off-balance sheet risks'? What disclosures are required?

8.Various contractual forms specify additional terms such as collateral. Describe collateral as it pertains to a company's debt.

9.Describe the two cash flows associated with bonds.

10.Why might a company redeem bonds before they mature?

11.How does the balance between debt and equity in non-U.S. companies compare to the balance of debt and equity in U.S. companies?