Stech Co Is Issuing $7

question 4

Multiple Choice

Stech Co. is issuing $7.5 million 12% bonds in a private placement on July 1, 2014. Each $1,000 bond pays interest semi-annually on December 31 and June 30 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds?

• A) $9,538,574.
• B) $11,250,000.
• C) $9,512,998.
• D) $9,589,572.

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Definitions:

Positive Self-Concept

An individual's overall sense of self-value that is positive and healthy.

Sense Of Shame

A complex emotion that combines feelings of failure, dishonor, and unworthiness, often triggered by perceived personal shortcomings or societal judgment.

Prove Himself

The act of demonstrating one's abilities or worthiness through actions or achievements.

Protective Optimism

The belief that positive outcomes are more likely than negative ones, often leading individuals to take preventive actions.