When the required return is different from the coupon interest ...

[karen]

When the required return is different from the coupon interest rate and is constant until maturity, the value of the bond will approach its par value as it nears maturity.
 
  Indicate whether the statement is true or false

Question 2

The tax treatment regarding the sale of existing assets that are sold for their book value results in ________.
 
  A) an ordinary tax benefit
  B) no tax benefit or liability
  C) recaptured depreciation taxed as ordinary income
  D) a capital gain tax liability and recaptured depreciation taxed as ordinary income

[frre432]

Answer to Question 1

TRUE

Answer to Question 2

B

[karen]

YES! Correct, THANKS for helping me on my review

[tkempin]

Thanks for the timely response, appreciate it