Moon Software Inc

question 74

Multiple Choice

Moon Software Inc.is planning to issue two types of 25-year,noncallable bonds to raise a total of $6 million,$3 million from each type of bond.First,3,000 bonds with a 10% semiannual coupon will be sold at their $1,000 par value to raise $3,000,000.These are called "par" bonds.Second,Original Issue Discount (OID) bonds,also with a 25-year maturity and a $1,000 par value,will be sold,but these bonds will have a semiannual coupon of only 6.25%.The OID bonds must be offered at below par in order to provide investors with the same effective yield as the par bonds.How many OID bonds must the firm issue to raise $3,000,000? Disregard flotation costs,and round your final answer up to a whole number of bonds.

• A)4,228
• B)4,337
• C)4,448
• D)4,562
• E)4,676

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The individual characteristics or features that distinguish a product or service, contributing to its performance and appeal.

Principle of Similarity

A principle stating that objects that are similar in appearance are more likely to be perceived as belonging together within a group.

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The study of how time is used in communication, considering how time influences interactions and perceptions in various cultures.

Haptics

The science and technology of transmitting and understanding information through touch.