Valente Company Is About to Issue $3,000,000 of 5-Year Bonds

question 11

Multiple Choice

Valente Company is about to issue $3,000,000 of 5-year bonds, with a contract rate of interest of 10%, payable semiannually. The discount rate for such securities is 8%. How much can Valente expect to receive from the sale of these bonds?

• A) $2,768,338
• B) $3,000,000
• C) $3,243,315
• D) $3,231,660

---

Definitions:

3M

A diversified technology company known for products like Post-it Notes, Scotch Tape, and numerous other innovations.

Open Innovation

Refers to a business model that promotes collaboration with individuals and organizations outside the company to drive innovation in products, services, and processes.

Idea Champions

Individuals who actively support, promote, and ensure the success of a new idea or innovation within an organization.

Identity Shift

The process of changing or evolving one's sense of identity or self-concept, often in response to new experiences or information.