Aspens is preparing a bond offering with a coupon rate of 5.5 percent. The bonds will be repaid in 10 years. The company plans to issue the bonds at par value and pay interest annually. Which one of the following statements is correct? Assume a face value of $1,000.
A) The bonds will pay 19 interest payments and one principal payment.
B) The bonds will initially sell at a discount.
C) At maturity, the bonds will pay a final payment of $1,027.50.
D) The bonds will pay twenty equal coupon payments.
E) At issuance, the bond's yield to maturity is 5.5 percent.
E) At issuance, the bond's yield to maturity is 5.5 percent.
You might also like to view...
The allowance for bad debts account may have a credit balance prior to adjustment
a. True b. False Indicate whether the statement is true or false
The executive summary should be the first part of the report written
Indicate whether the statement is true or false
In product-based tailored sourcing,
A) low-volume products with uncertain demand are obtained from a flexible source. B) high-volume products with less demand uncertainty are obtained from an efficient source. C) high-volume products with less demand uncertainty are obtained from a flexible source. D) A and B only
Henderson Products is a price-setter that uses the cost-plus pricing approach
The products are specialty components used in industrial equipment. The CEO is certain that the company can produce and sell 500,000 units per year, due to the high demand for the product. Variable costs are $3.25 per unit. Total fixed costs are $860,000 per year. The target operating income for the year is $150,000. What sales price would allow the CEO to achieve the target if the cost-plus pricing method is used? (Round your answer to nearest cent.) Show all computations. What will be an ideal response