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Q: A long-term loan against which collateral has been pledged is known as a) bank indebtedness....

Q: A long-term loan against which collateral has been pledged is known as

a) bank indebtedness.

b) Line of Credit.

c) Mortgage Payable.

d) Lease Liability.

Q: The proceeds from the sale of a bond are equal to

a) the face value of the bond.

b) the face value of the bond plus the present value of the interest to be paid.

c) the maturity value of the bond plus the interest to be paid.

d) the present value of the principal and interest to be paid.

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Homework Answers

Answer #1
1
Mortgage Payable is a loan against which collateral has been pledged .
Mortgage Payable is secured by property of borrower and the property is liable to be seized in case of non payment.
Option C is correct
2
The proceeds from the sale of a bond are equal to the present value of the principal and interest to be paid.
The present value of the principal and interest to be paid is calculated using market rate of interest on the date of issue.
Option D is correct
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