The ABC Corporation Issues a $1,000 Bond,with an Interest Rate

question 67

Multiple Choice

The ABC Corporation issues a $1,000 bond,with an interest rate of 10%,and a maturity date of 2015.This creates a liability for the ABC Corporation to pay the bondholder:

• A)$100 interest per year and $1,000 in the year 2015.
• B)10% of the selling price of the bond.
• C)an interest payment equal to the dividend payment distributed to the common stockholders.
• D)$1,100 annually until the year 2015.

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Definitions:

Economic Needs

The fundamental requirements for goods and services that satisfy basic needs like shelter, food, and clothing, as well as desires for improved quality of life.

Recession

A significant decline in economic activity across the economy, lasting for a period of months or years, typically recognized by a decrease in GDP.

Satisfying Product

A product that meets or exceeds customer expectations, providing them with value and satisfaction.

Product Benefit

The value or advantage that a product offers to the customer, addressing their needs or solving their problems, often used as a key selling point.