If a Corporate Bond with a Face Value of $2,000

question 58

Multiple Choice

If a corporate bond with a face value of $2,000 pays yearly coupon payments of $50, what is the coupon rate?

• A)2.5%
• B)4%
• C)25%
• D)40%

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Definitions:

Net Cash

The difference between all cash inflows and outflows within a given period, often used to assess financial health.

Operating Activities

Day-to-day actions and transactions that are directly related to running a business, such as buying, selling, and production.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets on the balance sheet until used or consumed.

Net Cash

The difference between a company's total cash inflows and outflows over a specific period.