Semiannual Payment Bonds with the Same Risk (Aaa) and Maturity

question 48

Multiple Choice

Semiannual payment bonds with the same risk (Aaa) and maturity (20 years) as your company's bonds have a simp yield of 9 percent.Your company's treasurer is thinking of issuing at par some $1,000 par value, 20-year, quarterly p bonds.She has asked you to determine what quarterly interest payment, in dollars, the company would have to set i provide the same effective annual rate (EAR) as those on the 20-year, semiannual payment bonds.What would the interest payment be, in dollars?

• A)$45.00
• B)$25.00
• C)$22.25
• D)$27.50
• E)$23.00

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Free Riders

Individuals or entities that benefit from resources, goods, or services without paying for them or contributing to their provision.

Common Resource

A type of good that is accessible to all members of a community or society but is susceptible to overuse and depletion.

Disjunctive Tasks

Tasks in which the performance of the group is determined by the performance of the best individual member.

Skilled Members

Individuals within a group or organization who possess specialized knowledge, abilities, or expertise that contribute to achieving common goals.