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A certificate issued by a corporation in exchange for money borrowed from investors is called a .?
A certificate issued by a corporation in exchange for money borrowed from investors is called a bond. Bonds represent a loan made by the investor to the issuer, typically with a fixed interest rate and specific maturity date. Investors receive periodic interest payments and the principal amount back at maturity.
Will the total amount of interest expense reported over the life of the bonds be the same regardless of whether the bonds are issued at par premium or discount?
No, the total amount of interest expense reported over the life of the bonds will not be the same if the bonds are issued at par, premium, or discount. When bonds are issued at a premium, the effective interest expense is lower than the nominal interest payments, whereas, for bonds issued at a discount, the effective interest expense is higher than the nominal payments. Thus, the total interest expense recognized will differ based on the issuance price relative to par value.
What does writ amount mean?
The amount of a court issued judgment.The amount of a court issued judgment.The amount of a court issued judgment.The amount of a court issued judgment.
What is a principal of a bond?
The principal of a bond is the amount of a bond that interest rates are paid on by the person issuing it. I like to think of it as the initial amount the bond is worth. Example: Hudson Corporation issued a $10,000 bond at 14% interest. The $10,000 is the principal of the bond.
Do you get charged interest on your statement balance or current balance?
Interest is typically charged on the statement balance, which is the amount you owe at the end of the billing cycle. The current balance includes new charges and payments made after the statement is issued.
What bond represents an organization?
A corporate bond represents a debt security issued by a corporation to raise capital. It is essentially a loan from an investor to the corporation, with the promise of regular interest payments and the repayment of the principal amount at maturity.
A certificate issued by a corporation in exchange for money borrowed from investors is called a .?
A certificate issued by a corporation in exchange for money borrowed from investors is called a bond. Bonds represent a loan made by the investor to the issuer, typically with a fixed interest rate and specific maturity date. Investors receive periodic interest payments and the principal amount back at maturity.
When the interest payment dates are March 1 and September 1 and notes are issued on July 1 the amount of interest expense to be accrued at December 31 of the year of issued would be for how long?
10 months
What are three main characteristics of bonds?
Bonds are a form of debt securities issued by governments or corporations. They typically have a specified maturity date when the principal amount is repaid. Bonds pay periodic interest payments to bondholders based on a fixed or floating interest rate. The value of bonds can fluctuate depending on changes in interest rates and the creditworthiness of the issuer.
When effective interest method is used to amortize bond premium or discount the periodic amortization will be?
increasse if the bonds were issued at either a discount or premium.
Will the total amount of interest expense reported over the life of the bonds be the same regardless of whether the bonds are issued at par premium or discount?
No, the total amount of interest expense reported over the life of the bonds will not be the same if the bonds are issued at par, premium, or discount. When bonds are issued at a premium, the effective interest expense is lower than the nominal interest payments, whereas, for bonds issued at a discount, the effective interest expense is higher than the nominal payments. Thus, the total interest expense recognized will differ based on the issuance price relative to par value.
What does writ amount mean?
The amount of a court issued judgment.The amount of a court issued judgment.The amount of a court issued judgment.The amount of a court issued judgment.
Can a lien holder ask for more than the lien is worth?
The recorded lien represents the amount due at the time the lien was issued by the court. Court judgments carry interest for every day they go unpaid. In Massachusetts the rate is 12%. The interest can cause the amount due on the lien to grow, especially if years pass before the lien is paid. An attorney could review the amount the creditor is asking for to make certain they are not inflating the amount due. Or, you could check with the court that issued the lien.The recorded lien represents the amount due at the time the lien was issued by the court. Court judgments carry interest for every day they go unpaid. In Massachusetts the rate is 12%. The interest can cause the amount due on the lien to grow, especially if years pass before the lien is paid. An attorney could review the amount the creditor is asking for to make certain they are not inflating the amount due. Or, you could check with the court that issued the lien.The recorded lien represents the amount due at the time the lien was issued by the court. Court judgments carry interest for every day they go unpaid. In Massachusetts the rate is 12%. The interest can cause the amount due on the lien to grow, especially if years pass before the lien is paid. An attorney could review the amount the creditor is asking for to make certain they are not inflating the amount due. Or, you could check with the court that issued the lien.The recorded lien represents the amount due at the time the lien was issued by the court. Court judgments carry interest for every day they go unpaid. In Massachusetts the rate is 12%. The interest can cause the amount due on the lien to grow, especially if years pass before the lien is paid. An attorney could review the amount the creditor is asking for to make certain they are not inflating the amount due. Or, you could check with the court that issued the lien.
Who is the owner of bank notes?
The treasury is the entity that issues bank notes. They are issued on the amount of gold in the treasury. They are a promise to pay the holder the amount on the note. Although the holder is in possession of a note , the treasury still owns it.
What is a principal of a bond?
The principal of a bond is the amount of a bond that interest rates are paid on by the person issuing it. I like to think of it as the initial amount the bond is worth. Example: Hudson Corporation issued a $10,000 bond at 14% interest. The $10,000 is the principal of the bond.
What is bond in credit instrument?
A bond is a debt instrument issued by a borrower to investors, who essentially become lenders to the issuer. The issuer agrees to repay the borrowed amount at a specified future date (maturity) and pays periodic interest payments to the bondholders in the meantime. Bonds are used by entities such as governments and corporations to raise capital.
What do you understand by Loan Amortization?
Loan amortization is the process of paying back a loan over an extended duration of time along with the interest incurred. The interest to be paid for the amount borrowed, till the loan is completely repaid, is calculated in advance. This is divided by the total number of payments being made and added with the principal payments to arrive at an amount that consists of both the principal as well as the interest. The payments have to be made according to this amortization schedule, which is decided before the loan is issued and could be in the form of simple monthly or annual payments. Before the principal amount is issued, the terms for calculation of the interest are also fixed.
