96) Match each of the following terms with the appropriate situation below. Each term is used only once.
a. zero-interest bonds
b. bond premium
c. bond discount
d. par value
______ 1. Jon-med Company sold $40,000 worth of bonds for $40,500.
______ 2. Jon-med Company sold $40,000 worth of bonds for $39,500.
______ 3. Jon-med Company sold $40,000 worth of bonds for $40,000.
______ 4. Jon-med Company issued bonds that sold at a discount and will not pay interest during the life of the bond issue.
97) Match each of the following terms with the appropriate situation below.
a. discount
b. premium
c. maturity
d. interest
______ 1. Team Shirts issued bonds that will be paid back in 2018.
______ 2. Team Shirts issued bonds that make regular annual payments of 6%.
______ 3. Team Shirts issued bonds with a face value of $50,000 that sold for $49,780.
______ 4. Team Shirts issued bonds with a face value of $50,000 that sold for $52,520.
98) Match each of the following situations with the appropriate term below. Terms may be used more than once.
a. maturity
b. interest
c. premium
d. discount
______ 1. Bank, Rupp & Baroque, Inc. issued bonds that sold for $101,000.
______ 2. Bank, Rupp & Baroque, Inc. bonds carried a stated rate of 6.5%.
______ 3. Bank, Rupp & Baroque, Inc. bonds will be due in 2030.
______ 4. Bank, Rupp & Baroque, Inc. issued bonds that sold for $99,000.
______ 5. The semi-annual payment to bondholders is $6,000.