If a bond for a capital project is issued at a premium then these funds are generally: A. Bonds do not sell at a premium, only at face value B. Retained in the capital projects fund C. Transferred to the General Fund D. It depends on the debt covenants E. Transferred to the debt service fund

Question

23-10-2019
Social Studies

contestada

If a bond for a capital project is issued at a premium then these funds are generally: A. Bonds do not sell at a premium, only at face value B. Retained in the capital projects fund C. Transferred to the General Fund D. It depends on the debt covenants E. Transferred to the debt service fund

Respuesta :

Otras preguntas

The key personal decisions that can influence your personal safety while exercising are __________.

The golf club needs to raise $2,620.00 for a trip to play golf at Augusta Country Club. They are selling boxes of personalized golf balls for $25.00 per box. Th

Jackson's attack on the national bank resulted in (A) the Whig Party (B) the BUS (C) pet bank failures (D) Jackson's re-election

what groups of rocks does sandstone belong in

(MC)How did the Dawes Plan increase the stability of European nations? It offered incentives for the rebuilding of war-torn areas. It allowed for political lead

When examining the three media in the lab, which medium did you think would cause the most bending of light when the light passed through it?

What are the disadvantages on liberalism?

What Are The Advantage And Disadvantage Of Democratic Style?

What Is The Role Of NGO In Pakistan?

The golf club needs to raise $2,620.00 for a trip to play golf at Augusta Country Club. They are selling boxes of personalized golf balls for $25.00 per box. Th

kianakern kianakern · Answer 1 · 2019-10-23T20:43:39+02:00

Answer:

When bonds are issued for more than their par value, the premium can be interpreted as an adjustment of the interest rate and transferred to the debt service fund — the fund in which resources for the payment of debt will be accumulated. Although the same interpretation can be placed upon bond discounts, there may be no funds available in the debt service fund (or any other fund) for transfer to the capital projects fund. Therefore, the project must be scaled back or additional means of financing secured.

Explanation:

Your welcome!!!!!!