Using the Same Information as the Question Above, Assume That

question 21

Multiple Choice

Using the same information as the question above, assume that 20 years after the bond is issued, bond market investors require a 15 percent interest rate on the bond. What is the market price of the bond?

• A) $6,835
• B) $6,863
• C) $7,653
• D) $14,270

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Definitions:

Federal Labor Law

Legislation that regulates the rights and duties between employers and workers at the national level.

Majority Vote

A voting requirement that more than half of the votes cast by members entitled to vote are necessary to make a decision or pass a proposal.

Floral Workers Union

A labor union representing the interests and rights of workers within the floristry industry.

Labor-Management Relations Act

A law, also known as the Taft-Hartley Act, that regulates the relations between labor unions and employers.