A Corporate Bond Makes Payments of $9

question 79

Multiple Choice

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

• A) a 10-year bond with a face value of $2009.67 and a coupon rate of 4.8% with monthly payments
• B) a 10-year bond with a face value of $2009.67 and a coupon rate of 5.8% with monthly payments
• C) a 10-year bond with a face value of $2000 and a coupon rate of 5.8% with monthly payments
• D) a 10-year bond with a face value of $2000 and a coupon rate of 4.8% with monthly payments

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Definitions:

Stalwarts

Well-established companies known for their durability, stable earnings, and regular dividend payments.

Slow-growers

Companies or stocks that exhibit lower-than-average growth in terms of revenue or earnings, often offering stable dividends.

Industry Life Cycle

The Industry Life Cycle describes the stages of growth and development that an industry undergoes, beginning with its introduction, growth, maturity, and eventual decline.

Start-up

A young company founded to develop a unique product or service, bring it to market, and make it viable and sustainable.