A Company Has an Investment in 9% Bonds with a Par

question 144

Multiple Choice

A company has an investment in 9% bonds with a par value of $100,000 that pay interest on October 1 and April 1.The amount of interest accrued on December 31 (the company's year-end) would be:

• A)$750.
• B)$1,500.
• C)$2,250.
• D)$4,500.
• E)$9,000.

---

Definitions:

Population standard deviation

A measure of the dispersion or variability of a set of data points in a population, indicating how much the individual data points differ from the population mean.

Sample mean

The average value of the sample set, calculated as the sum of all observations divided by the number of observations.

Population proportion

The ratio of members in a population that have a particular attribute or characteristic, represented as a fraction or percentage of the total.

Standard error of the mean

The standard deviation of the sampling distribution of the mean, indicating the variability of sample means around the population mean.