Sharmer Company Issues 5%,5-Year Bonds with a Par Value of $1,000,000

question 4

Multiple Choice

Sharmer Company issues 5%,5-year bonds with a par value of $1,000,000 and semiannual interest payments.On the issue date,the annual market rate for these bonds is 6%.What is the bond's issue (selling) price,assuming the following factors:

• A)$957,355
• B)$1,000,000
• C)$1,250,000
• D)$786,745
• E)$1,213,255

---

Definitions:

Order Size

The quantity of goods a company purchases or produces in a single order to meet its demand while minimizing costs.

Disaster Risk

The likelihood of loss of life, injury, or destruction and damage from a disaster in a given period.

Suppliers

Entities that provide goods or services to another entity, typically within a supply chain, to assist in the production of final products or services.

Expected Monetary Value

A statistical technique in decision-making that calculates the average outcome when the future includes scenarios that may or may not happen.