PEREGRINE ACCOUNTING AND FINANCE PRACTICE PAPER 2026 COMPLETE SOLUTIONS

PEREGRINE ACCOUNTING AND FINANCE
PRACTICE PAPER 2026 COMPLETE SOLUTIONS

◉ T/F Bonds have maturity rates. Answer: T


◉ Bonds must be. Answer: paid back in full or risk default


◉ Which bond is issued by companies?. Answer: Corporate bonds


◉ Companies issue these rather than bank loans. Answer: Corporate
bonds


◉ Corporate bonds. Answer: offer lower interest rates


◉ municipal bonds are. Answer: issued by states and municipalities


◉ T/F Municipal bonds are tax free coupon income. Answer: T


◉ Government Bonds. Answer: Certificates sold by the government
to raise money with the guarantee that the purchaser will be paid
back later (with interest)

, ◉ Agency Bonds. Answer: bonds issued by US government agencies


◉ Which coupon is given at discount to par value?. Answer: zero-
coupon


◉ zero coupon bond. Answer: generate a return when bond holder
is paid in full face when bond matures


◉ convertible bonds. Answer: Bonds that can be converted into
common stock at the bondholder's option


◉ callable bonds. Answer: bonds that the issuing company can
redeem (buy back) at a stated dollar amount prior to maturity


◉ Puttable bonds. Answer: Are able to be sell back to company
before it matures


◉ Common types of financial statements. Answer: balance sheet


income statement


cash flow