Your Company Is Planning to Issue $1,000 Bonds with a Stated

question 82

Multiple Choice

Your company is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15,2022.If interest rates rise in the economy so that similar financial investments pay 9%,your company will:

• A)not be able to issue the bonds because no one will buy them.
• B)receive a higher issue price to compensate buyers for the lower stated interest rate.
• C)have to accept a lower issue price to attract buyers.
• D)have to reprint the bond certificates to change the stated interest rate to 9%.

---

Definitions:

Community

A group of people living in the same place or having a particular characteristic in common, often sharing a sense of belonging or mutual support.

Incorrect Statement

A declaration or assertion that is not accurate or true.

Values

The principles or standards of behavior considered important in life or society.

Minimal Standard

A baseline level of quality or performance required to meet regulatory compliance or satisfy basic operational criteria.