A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

A. $9,000.
B. $8,000.
C. $0.
D. $4,000.
E. $4,500.


Answer: E

Business

You might also like to view...

Clark was late to work one morning and decided to use the McDonald's drive-through for his morning cup of coffee. Normally a coffee drinker loyal only to Starbucks, Clark was more interested in speed due to his tardiness. Which of the following best describes Clark's shopping situation?

A. Specialty shopping B. Time-crunch shopping C. Comparison shopping D. Distributive shopping E. Convenience shopping

Business

A person is not a holder if she is in possession of an instrument that is payable to bearer.

Answer the following statement true (T) or false (F)

Business

Why might measuring service quality be more difficult than measuring product quality?

What will be an ideal response?

Business

An airline has determined that 25% of its international flights are not on time. Use the normal approximation to the binomial distribution to answer the following questions. What is the probability that of the next 80 international flights a.fifteen or fewer will not be on time?b.eighteen or more will not be on time?c.exactly 17 will not be on time?

What will be an ideal response?

Business