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.

---

Definitions:

Structuralism

A theory of consciousness that emphasizes analyzing the basic components of thoughts and sensations to understand the structure of the mind.

Functionalism

An early school of thought concerned with the adaptive purpose, or function, of mind and behavior.

Nature/nurture Debate

The nature/nurture debate is an ongoing discussion in psychology and biology about the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Structuralism

An approach in psychology that analyzes the basic elements of thoughts and sensations to understand the structure of the mind.