ICX Company Has an Issue of Perpetual Bonds (Par Value

question 126

Multiple Choice

ICX Company has an issue of perpetual bonds (par value to $1,000) that pays 5% annual interest. Determine the yield (to the nearest tenth of 1 percent) if the bonds are currently selling for $625.

• A) 5.0%
• B) 8.0%
• C) 3.1%
• D) 6.25%

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Definitions:

Vas Deferens

A tube that transports sperm from the testicles to the urethra.

Circumcision

A surgical procedure that removes the foreskin from the human penis.

Gonorrhea

A sexually transmitted infection caused by the Neisseria gonorrhoeae bacterium, characterized by discharge and discomfort.

Venereal

Relating to, affected by, or being a disease (such as syphilis or gonorrhea) transmitted through sexual contact.