On April 15, 2020, Cando Inc

question 22

Multiple Choice

On April 15, 2020, Cando Inc. sold $10,000,000 of five-year, 3% bonds for $9,972,469. From the proceeds, Cando paid its investment bank a $200,000 sales commission.
Interest is payable semi-annually on April 15 and October 15. What is the effective rate of interest (round to 2 decimal places) ?

• A)1.53%
• B)1.75 %
• C)3.00%
• D)3.50%

Understand the concept of organizational commitment, its types, and its impact on job performance and organizational citizenship.

Identify factors leading to job involvement and how it relates to job performance and satisfaction.

Explain the importance of organizational citizenship and how it benefits the organization.

Recognize the various facets of job satisfaction and how they influence the overall job performance.

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Definitions:

Present Value

The present worth of a future amount of money or series of cash flows, when calculated using a particular return rate.

Nominal Annual Rate

The interest rate stated on a loan or financial product, not adjusted for inflation or the compounding of interest within a year.

Effective Rate

The actual interest rate on a loan or financial product, taking into account the compounding of interest over time, contrasting with the nominal rate.

Mixed Economy

An economic system that combines elements of both capitalism and socialism, featuring a blend of private and public ownership of means of production.