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

question 11

Multiple Choice

Valente Company is about to issue $3,000,000 of 5-year bonds, with a contract rate of interest of 10%, payable semiannually. The discount rate for such securities is 8%. How much can Valente 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:

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual that is distinct from one another.

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Psychodynamic Theories

Theories that emphasize the influence of the unconscious mind and childhood experiences on personality and behavior.

Behavioral Theories

Refer to a range of theories in psychology that emphasize the importance of observable behaviors and the ways in which they are learned.