JMR LtdIssued $100,000 of 8%, 8 Year, Non-Convertible Bond with Detachable

question 49

Multiple Choice

JMR Ltd.issued $100,000 of 8%, 8 year, non-convertible bond with detachable stock purchase warrants.KER Corp.purchased the entire issue.Each $1,000 bond carries 10 warrants.Each warrant entitles KER to purchase one common share for $20.The bond issue sells for 104 exclusive of accrued interest.Shortly after issuance, the warrants trade for $5 each and the bonds were quoted at 103 ex-warrants.The allocation of the proceeds to bonds using the proportional method was:

• A)$108,000
• B)$107,000
• C)$99,185
• D)$100,000

---

Definitions:

Autocorrelation

The correlation of a signal with a delayed copy of itself as a function of delay.

Regression Assumption

The underlying assumptions required for regression analysis, including linearity, independence, homoscedasticity, and normality of residuals.

Cost of Paper

The expenditure associated with acquiring paper, which can vary based on type, quality, quantity, and market conditions.

Confidence Interval

A band of values, derived from empirical data, hypothesized to enfold the value of an unseen population parameter.