Use the Following Information for Questions

question 1

Multiple Choice

Use the following information for questions.issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31.The bonds were sold to yield 8%.Table values are:
-Farmer Company issues $10,000,000 of 10-year, 9% bonds on March 1, 2010 at 97 plus accrued interest.The bonds are dated January 1, 2010, and pay interest on June 30 and December 31.What is the total cash received on the issue date?

• A)$9,700,000
• B)$10,225,000
• C)$9,850,000
• D)$9,550,000

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Definitions:

Dependent Variable

A variable in an experiment or model whose value is affected or determined by other variables, typically the outcome or response variable.

Y-intercept

The point where a line or curve intersects the y-axis of a graph.

Intercept

The value where a regression line crosses the y-axis, indicating the predicted value when all independent variables are zero.

Coefficient of Multiple Correlation

A statistical measure that represents the strength of the relationship between several independent variables and a single dependent variable.