Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

Financial Accounting

11. Long Term Liabilities

Introduction to Bonds and Bond Characteristics

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Multiple Choice

Which of the following variables is NOT required to calculate the value of a bond?

The market interest rate (yield to maturity)

The bond's coupon rate

The bond's maturity date

The issuing company's total assets

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Verified step by step guidance

Understand the components required to calculate the value of a bond. These typically include the bond's coupon rate, the market interest rate (yield to maturity), and the bond's maturity date.

Recognize that the bond's coupon rate determines the periodic interest payments made to bondholders. This is a key variable in bond valuation.

Identify that the market interest rate (yield to maturity) is essential for discounting the bond's future cash flows to their present value. This reflects the current market conditions and investor expectations.

Note that the bond's maturity date is required to determine the timeline over which the bond's cash flows (coupon payments and principal repayment) will occur.

Understand that the issuing company's total assets are not directly relevant to the calculation of a bond's value. Bond valuation focuses on the bond's specific terms and market conditions, not the company's overall financial position.