A Firm Has an Issue of $1000 Par Value Bonds

question 205

Multiple Choice

A firm has an issue of $1000 par value bonds with a 12 percent stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8 percent, the firm's bond will sell for_________ today.

• A) $805
• B) $1,268
• C) $1,000
• D) $851

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Definitions:

Social Controls

Mechanisms, strategies, and institutions by which society regulates individual and group behavior, aiming to conform to societal norms and rules.

Conflict Theory

A theory in sociology that views society as an arena of inequality that generates conflict and change, focusing on the disparities between social groups.

Criminality

The condition of participating in unlawful acts or having a propensity to engage in criminal behavior.

Deviance

Behaviors or actions that violate social norms and expectations, often eliciting negative social reactions.