Use the Information Below to Answer the Following Questions

question 21

Multiple Choice

Use the information below to answer the following questions.
Dan's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows:
Palings $4,000
Posts $5,000
Nails (no usage records) $500
Cement (no usage records) $500 Wear and tear on equipment $1,000
-Refer to the table above. The cost per metre of fencing is:

• A) $2.25
• B) $2.50
• C) $2.38
• D) $2.75

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Definitions:

Coupon Rate

The yearly interest yield from a bond, shown as a percentage of its nominal value.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime, factoring in its current market price, face value, interest rate, and time to maturity.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest funds in the broader financial market.

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates.