If You Require an 11% Rate of Return,how Much Would

question 26

Multiple Choice

If you require an 11% rate of return,how much would you pay now for a bond with a face value of $3,000,pays $120 interest each year and matures in 11 years' time? Round your answer to the nearest $10.

• A)$810
• B)$2,130
• C)$1,700
• D)$1,950

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting its liabilities; also known as shareholders' equity.

Liabilities

Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages.

Total Assets

The sum of all current and non-current assets owned by a company, reflecting its overall value.

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, that are essential but not directly tied to the production of goods.