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1) An increase in the market interest rates for bonds will cause the selling price of an existing bond to __________ (decrease, increase).
2) A long-term asset that is restricted for retiring bonds payable when they mature is a bond __________ fund.
3) Bonds without specific _________________ are unsecured bonds known as debentures.
4) When the premium on bonds payable is _______________ by the issuer, the carrying value of the bonds will decrease.
5) Bonds that mature on a single date are referred to as _______ bonds.
6) If an 8% bond is offered in a market that demands 7.9% interest, the amount received by the issuer will be ________ (less, more) than its face amount.
7) If the issue price of a new bond (excluding any accrued interest) is less than the bond's face amount, the difference is recorded as ______________ on Bonds Payable.
8) The effective interest rate method results in a correlation between a bond's interest expense and its carrying or __________ value.
9) The proceeds of a 9% $400,000 bond issued at 101 will be four hundred _______ thousand dollars plus accrued interest.
10) A bond maturing in three years will be reported on the issuer's balance sheet as a long-term _____________.
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