[CFA level 1模拟真题]Version 5 Questions－Q25 face, accounting, principles, otherwise, interest

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Q25. Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise notes.

A company issued a $1,000 face value bond on 1 January. The annual coupon rate on the bond is 10 percent, interest is paid semiannually, and the bond matures in five years. The market rate of interest when the bond was issued was 9 percent on an annual basis. The amount of the initially liability recorded and the interest expense recorded on the first coupon payment date, respectively, were closest to:

	Amount of the initial liability recorded	Interest expense recorded on the first coupon payment date
A	$1,000	$47
B	$1,000	$50
C	$1,040	$47
D	$1,040	$50

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答案详解如下：

Q25.   C  Study Session

Because the liability and interest expense recorded are both based on market rates of interest when the bond was issued, not the coupon rate on the bond. The market value of the bond at issuance was $1,039.56 (FV=1000, PMT=50, N=10,I/Y=4.5). Interest expense is the market rate at date of issuance multiplied by the balance of the liability. ($1,039.56)(0.045)=$46.78

liquidn

??

fantasy_ln

11

technet

c

ondesert

c

roger88

thanks

一只船

e

xiaomufeng

c

LEEFEI571

C