Q40. Which of the following statements about debt is least accurate? A) Convertible debt must be treated as equity when computing the firm's debt to equity ratio. B) When a bond’s coupon rate is greater than the market rate of return at issuance, the bond’s balance sheet value will be greater than the face value. C) If a firm issues bonds with detachable warrants, the proceeds must be allocated between the two components on the firm's balance sheet.
Q41. Which of the following statements for a bond issued with a coupon rate above the market rate of interest is FALSE? A) The bond will be shown on the balance sheet at the premium value. B) The value of the bond will be amortized toward zero over the life of the bond. C) The associated interest expense will be lower than that implied by the coupon rate.
| 
发表于 2009-1-19 11:33
| 
