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 is NOT true regarding callable bonds?

Callable bonds may be redeemed by the issuer at a specified call price.

Investors are guaranteed to receive all interest payments until maturity with callable bonds.

Callable bonds typically offer a higher yield to investors compared to non-callable bonds.

Callable bonds give the issuer the right to redeem the bonds before maturity.

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Verified step by step guidance

Understand the concept of callable bonds: Callable bonds are bonds that give the issuer the right to redeem (or 'call') the bonds before their maturity date, typically at a specified call price.

Analyze the statement 'Callable bonds may be redeemed by the issuer at a specified call price': This is true because callable bonds include provisions that allow the issuer to buy back the bonds at a predetermined price.

Evaluate the statement 'Investors are guaranteed to receive all interest payments until maturity with callable bonds': This is NOT true because callable bonds allow the issuer to redeem the bonds early, which means investors may not receive all interest payments until maturity.

Review the statement 'Callable bonds typically offer a higher yield to investors compared to non-callable bonds': This is true because callable bonds carry higher risk for investors (due to the possibility of early redemption), and issuers compensate for this risk by offering higher yields.

Examine the statement 'Callable bonds give the issuer the right to redeem the bonds before maturity': This is true and is the defining feature of callable bonds.