Tony's Pizzeria Plans to Issue Bonds with a Par Value

question 51

Multiple Choice

Tony's Pizzeria plans to issue bonds with a par value of R1,000 and 10 years to maturity.These bonds will pay R45 interest every 6 months.Current market conditions are such that the bonds will be sold to net R937.79.What is the YTM of the issue as a broker would quote it to an investor?

• A) 11%
• B) 10%
• C) 9%
• D) 8%
• E) 7%

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Definitions:

Weak Ties

Refers to the casual or superficial connections in a social network, which can play a crucial role in spreading information and opportunities.

Negative Word

A term that conveys an unfavorable, adverse, or pessimistic meaning.

Positive Comments

Feedback or remarks that express approval, encouragement, or favorable opinions, typically found on social media or online forums.

Influencers

Individuals or entities that have the power to affect the purchasing decisions of others due to their authority, knowledge, position, or relationship with their audience.