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4. If there were n arrivals of a Poisson process with Sn being th.pdf

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4. If there is a loss an bonds redeemed early, the 2. loss is debited directly to Retained Eamings. b. bonds' carrying value wat less than the redemption price. c. bonds' carryiog value was greater than the redemption price. d. loss is debiled to lnferest Expense, as a cost of financiog. 5. If the market inscrest nate is greater than the cortractual interest rate, bonds will sell a at a promium c. at face walue. d. only after the stat of interest rate is itcreasat. 6. Robin Corporation retires its 5800.000 face value bonds at 104 on January 1 , following the paymeat of annesal interest. The carrying value of the bonds at the redemption date is 1829,960 . The entry to record the redempeion will inclode a a. credit of 12,040 to Loss on Bond Redcanption. b. debit of 42,040 to Loss on Bond Redemption. c. credit of 232,040 to Premium on Bonds Payabic. d. debit of 32,000 to Premium on Bonds Payable. 7. Harris Compuny borrowed 5800,000 from Liber Bank on January 1,2019 in order to expand its mining capabilitics. The five-year note required annual payments of $208,349 and carried an 2020 ? antest rate of 85%. What is the balance in the notes payable account at December 31 . a. 6800,000 c. 6659,651 d. 6664,000 8. A bond with a face value of 530,000,000 and a quoted price of 97/2 has a selling price of a. $29,115.000 b. 529,250,000 c. $30,000,000 d. $30,750,000 9. BDX comporation issued 13.000 shares of no-par value ordinary shares for 622.50 per share. Which of the following statemeats is true? a. Share Premium-Ordinary account will increase by E13,000. 4. If there is a loss on bonds redeemed early, the a. loss is debited directly to Retained Earnings. b. bonds' carrying value was less than the redemption price. c. bonds' carrying value was greater than the redemption price. d. loss is debited to Interest Expense, as a cost of financing. 5. If the market interest rate is greater than the contractual interest rate, bonds will sell a. at a premium. b. at face value. c. at a discount. d. only after the stated interest rate is increased. 6. Robin Corporation retires its 800,000 face value bonds at 104 on January 1 , following the payment of annual interest. The carrying value of the bonds at the redemption date is 829,960. The entry to record the redemption will include a a. credit of 2,040 to Loss on Bond Redemption. b. debit of 2,040 to Loss on Bond Redemption. c. credit of 32,040 to Premium on Bonds Payable. d. debit of 32,000 to Premium on Bonds Payable. 7. Harris Company borrowed $800,000 from Liber Bank on January 1, 2019 in order to expand its mining capabilities. The five-year note required annual payments of $208,349 and carried an 2020? b. 6507,372 c. 6659,651 d. 6664,000 8. A bond with a face value of $30,000,000 and a quoted price of 971/2 has a selling price of a. $29,115,000 b. $29,250,000 d. $30,750,000.

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4. If there were ' n ' arrivals of a Poisson process with Sn being the time of the nth arrival, calculate: a. E(S1Sn) the expected time y of the 1st arrival (3 marks) b. E(S2Sn) the expected time y of the 2st arrival (4 marks)

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