IBM Is Planning to Issue $1,000 Bonds with a Stated

question 122

Multiple Choice

IBM is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15,2022.If interest rates fall in the economy so that similar financial investments pay 5%,IBM will:

• A)not be able to issue the bonds because no one will buy them.
• B)receive a higher issue price as buyers compete for the bonds.
• C)have to accept a lower issue price to attract buyers.
• D)have to reprint the bond certificates to change stated interest rate to 5%.

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Definitions:

Poplar

A type of fast-growing tree found in temperate regions, known for its soft wood used in various applications.

Oak

A group of trees or shrubs in the genus Quercus, known for their durable wood and significance in various habitats.

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A clean energy option using hydrogen gas as fuel, producing water as the only emission when consumed in a fuel cell.

Ozone Depletion

The gradual thinning of the earth's ozone layer in the stratosphere, primarily caused by the release of chemical compounds containing gaseous bromine or chlorine from industry and other human activities.