Glover Company Is About to Issue $3,000,000 of 5-Year Bonds

question 18

Multiple Choice

Glover Company is about to issue $3,000,000 of 5-year bonds, with a contract rate of interest of 8%, payable semiannually. The discount rate for such securities is 10%. How much can Glover expect to receive from the sale of these bonds?

• A) $2,768,338
• B) $3,000,000
• C) $3,243,315
• D) $3,231,660

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Definitions:

Stable

Characterized by consistency, reliability, and resistance to change over time or under varying conditions.

Chronically Lonely

Experiencing long-term feelings of loneliness and isolation that affect one's health and well-being.

Cognitive Therapy

An insight therapy that uses specific strategies to correct habitual thinking errors that underlie various types of disorders.

Social Skills

The abilities necessary to interact effectively and harmoniously with others, including communication, empathy, and conflict resolution.