Zappo Corporation Just Issued $1,000 Face Value Bonds That Will

question 33

Multiple Choice

Zappo Corporation just issued $1,000 face value bonds that will mature in 20 years and have a 7% coupon rate.Interest is paid semi-annually and the required rate of return is 9 percent for these bonds.The bonds have a 5 year call provision that will pay a call premium of $1,050 if they are called in.What is the price of the Zappo Corporation bond?

• A) $815.98
• B) $817.43
• C) $826.35
• D) $920.87
• E) $953.07

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Definitions:

Social Dominance Orientation

A scale that measures an individual’s preference for hierarchical relationships between social groups and the extent to which they support dominance and inequality among these groups.

Authoritarian Submission

A psychological behavior characterized by uncritical acceptance of authority, where individuals submit excessively to figures they perceive as authoritative.

Tolerance For Ambiguity

The ability or willingness of a person to accept and deal with uncertainty or unclear situations without becoming anxious or stressed.

Conventionalism

A belief in or support of ideas and behaviors that are traditional and widely accepted.