Amortized premium is computed annually when a bond is issued for other than its face value. For a bond issued at a premium, how will this component change as the bond approaches maturity?

a. decrease
b. increase
c. remain constant
d. not enough information given to decide

Business

The debt ratio is the ratio of total debt divided by total equity

Indicate whether the statement is true or false

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Business

In many cases, the final "GO" or "NO GO" decision comes down to the _______ analysis.

A. management acumen B. capital C. asset D. labour E. cost base

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Business