If the coupon interest rate on a bond is 8% and the market interest rate is 7%, the bond will be issued at a price above the par value of the bond.

If the coupon interest rate on a bond is 8% and the market interest rate is 7%, the bond will be issued at a price above the par value of the bond.


A.
True

B.
False



The times-interest-earned ratio is calculated by dividing operating income by operating expenses.
A.
True

B.
False

An operating lease transfers title of the leased asset to the lessee at the end of the lease term.
A.
True

B.
False

A bond's coupon rate is 4.9% when the market rate is 4.5%. This bond will be issued at:
A.
A discount

B.
A premium

C.
Par

If a bond with a $1,000 par value is issued at a DISCOUNT, the bond issuer will receive:

A.
$1,000

B.
More than $1,000

C.
Less than $1,000

The leverage ratio is equal to average total ________ divided by average ________.


A.
Debt; common stockholders' equity

B.
Long-term debt; common stockholders' equity

C.
Assets; common stockholders' equity

D.
Debt; total assets

Which rate is used to calculate the cash interest to be paid on a bond?
A.
Coupon rate

B.
Market rate