Ginny Incsold $800,000 of Two-Year Bonds for $701,500 Less Commissions of of $50,500.Interest

question 83

Multiple Choice

Ginny Inc.sold $800,000 of two-year bonds for $701,500 less commissions of $50,500.Interest is of 5.5% is payable semi-annually.What is the effective rate of interest (round to 2 decimal places) ?

• A)5.50 %
• B)8.43%
• C)8.65%
• D)17.29%

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Definitions:

Statistical Conclusion Validity

The degree to which conclusions drawn from statistical analysis accurately reflect the real relationships among variables.

Error Variance

The portion of variability in a set of scores that is not accounted for by the predictor variables in a study, attributable to unknown factors or measurement errors.

Construct Validity

The extent to which a test or experiment measures what it claims to measure.

Hypothetical Construct

An abstract concept that is created for a scientific theory or research and cannot be directly observed.