If 10,000 Shares with Par Value of $15/share Are Issued

question 47

Multiple Choice

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed capital" for financial statement purposes?

• A)$10,000
• B)$50,000
• C)$150,000
• D)$200,000

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Definitions:

Modified Duration

A measure that quantifies the sensitivity of a bond's price to changes in interest rates, adjusted for the bond's yield.

Coupon

A coupon refers to the annual interest payment received by bondholders, typically expressed as a percentage of the bond's face value.

Semiannually

Refers to an event or action that occurs twice a year, typically every six months.

Yield Curve

A graph that shows the relationship between interest rates and bonds of different maturities, usually interpreted as an indicator of future economic conditions.