A $100,000 5-Year 6% Bond Is Issued on January 1

question 47

Multiple Choice

A $100,000 5-year 6% bond is issued on January 1, 2020. The bond pays interest annually. The market rate is 8%. What is the selling price of the bonds, rounded to nearest dollar?

• A)$91,575
• B)$92,014
• C)$107,985
• D)$108,425

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Definitions:

Time Frames

Specific periods during which certain actions are to be completed or conditions are to exist.

Buffer Sentence

A neutral or positive opening sentence in a message that prepares the reader for the following information, which might be negative or controversial.

Routine Request

A standard or common inquiry or demand, often part of regular business or administrative procedures.

Being Specific

The quality of being clear and precise in communication or description, avoiding vagueness or ambiguity.