On January 1,a Company Issues 8%,5-Year,$300,000 Bonds That Pay Interest

question 141

Multiple Choice

On January 1,a company issues 8%,5-year,$300,000 bonds that pay interest semiannually.On the issue date,the annual market rate of interest is 6%.The following information is taken from present value tables: What is the issue (selling) price of the bond?

• A)$420,000
• B)$402,362
• C)$300,010
• D)$308,107
• E)$325,592

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Definitions:

Mary Parker Follett

An early 20th-century management consultant and social worker who emphasized human relations and leadership through group association.

Collective Responsibility

The concept that all members of a group share accountability for the actions and outcomes of the group as a whole.

Theory Y

The assumption that people are willing to work, like responsibility, and are self-directed and creative.

Managers

Individuals in an organization responsible for directing and overseeing the work of a group of people toward the achievement of goals.