Moore Industries Manufactures Exercise Equipment

question 69

Multiple Choice

Moore Industries manufactures exercise equipment.Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's exercise equipment.After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,000,000 of 11% bonds on March 1, 2015, due on March 1, 2030, with interest payable each March 1 and September 1.At the time of issuance, the market interest rate for similar financial instruments is 10%.What is the selling price of the bonds?

• A)$3,330,000
• B)$1,904,664
• C)$3,230,594
• D)$2,536,455

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Definitions:

Vocabulary

The set of words known and used by a person in speech and writing.

Private Speech

Verbal communication directed at the self, typical in early childhood, and used for self-guidance and regulation.

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.