Hey I got a couple more questions for you guys, please please help me out. 1. Th
ID: 2359173 • Letter: H
Question
Hey I got a couple more questions for you guys, please please help me out. 1. The amortization of premium on bonds payable will decrease the bond interest expense - WHY???? 2. Both stock dividends and stock splits affect total shares outstanding-WHY???? 3. Earnings per share is based on the weighted-average common shares outstanding-WHY???? 4.The purchase of office equipment for 20,000 cash is a cash outflow from investing activities-WHY??? 5. Unrealized gain on available-for-sale securities appears as an addition to stockholders equity on the balance sheet- WHY??? All of these answers were correct I just need to explain the answers to get credit for these questions. Thanks again I hope to get an answer soon :) Thanks Chegg!Explanation / Answer
The market value of an existing bond will change in the opposite direction of the change in market interest rates. In other words, if the market interest rates increase, the market value of an existing bond will decrease. A decrease in market interest rates will cause the market value of an existing bond to increase.