39 Which of the Following Accurately Describes Par Value
What coupon payment will the investor receive at the end of the first six months. Which of the following accurately describes the behavior of bond prices.
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The stock was purchased at above par value.

. The coupon rate of 4 is paid semiannually and the annual inflation rate is 25. Unrelated to actual stock value or price. Is a nominal arbitrary amount applied to shares of stock.
B For a given change in the market required rate of return the price of a bond will change by a smaller amount the longer its maturity. A fair value adjustment account is used in accounting for an investment in common stock. The fair value of the stock is less than cost.
Directly tied to issue price of stock. A For a given change in market required rate of return the price of a bond will change by proportionally less the lower the coupon. Which of the following statements about par value is true.
The post-adjustment year end balance in the fair value adjustment account is a debit at the end of the prior year. Determines amount of dividends that will be paid on common stock. Directly tied to market value of stock.
The stock was purchased at below par value. An investor holds 100000 par value worth of TIPS currently trading at par.
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