On May 5, 2020, Bennix Sold $1,000,000 of Five-Year, 3

question 52

Multiple Choice

On May 5, 2020, Bennix sold $1,000,000 of five-year, 3% bonds for $900,500. From the proceeds, the company paid fees of 100,000. Interest is payable semi-annually on May 5 and November 5. What is the effective rate of interest (round to 2 decimal places) ?

• A)3.00%
• B)3.72 %
• C)3.95%
• D)6.27%

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Definitions:

SBIRT

Screening, Brief Intervention, and Referral to Treatment; a comprehensive, integrated, public health approach to the delivery of early intervention and treatment services for persons with substance use disorders, as well as those who are at risk of developing these disorders.

Motivational Interviewing

A counseling approach designed to engage a person's own motivations and resources for change in behaviors, particularly those affecting health.

Cognitive Behavioral Therapy

A form of psychological treatment effective for a range of problems, focusing on changing unhelpful cognitive distortions and behaviors.

Dysfunctional Thought Patterns

Negative and often irrational thoughts that can be detrimental to an individual's mental health and well-being.