If the stated rate of a bond is 8% and the market rate of interest for similar bonds is 6%, the bonds will issue at _______
a. a discount
b. its par value
c. a premium
d. its stated value
c
You might also like to view...
Assume a state has a criminal statute that punishes "every person who by himself or his employee or agent sells anything at short measure.". Chris, an employee of Watkins Fencing, Inc within that state, intentionally sells wire fence to Nowton Construction at short measure. Watkins:
a. may be held criminally liable for Chris's act even if Watkins did not authorize this action. b. will only be held liable if Chris is a managerial employee. c. cannot be vicariously liable for Chris's action unless Watkins directed, participated in, or approved of the act. d. will not be vicariously liable for Chris's action if it was not authorized because the element of mental fault is missing on the part of Watkins.
HealthAssure Corp. manufactures Nicoloss, a nicotine-free supplement that helps people overcome their cigarette addiction. To promote its product, the company puts up kiosks inside a college campus. However, the product gets only a mild response from the students. Consequently, the company resorts to more active and aggressive promotional activities. In this scenario, Nicoloss is an example of a(n) _____.
A. convenience product B. unsought product C. shopping product D. specialty product
?Federal funds represent:
A. ?funds collected from federal tax payment by banks. B. loans from the federal government to banks.? C. loans from one bank to another bank.? D. funds with banks for the repayment of loans to the federal government.? E. ?funds collected from investors for investment in federal securities.
Price fixing means
A. a firm consciously setting its prices. B. pricing a product that will be sold in a foreign market at a level below the cost of production. C. selling products of like grade and quality to different buyers at different prices. D. competitors getting together to raise, lower, or stabilize prices. E. changing a price that was set at the wrong level by the financial manager.