Megan Invested in 10 Bonds with a Total Face Value

question 62

Multiple Choice

Megan invested in 10 bonds with a total face value of $5,000, issued by Zen Corporation. The bonds paid 10% semiannual interest till the maturity date. Which of the following is the value of interest earned in the first installment on a single bond?

• A)$50
• B)$100
• C)$500
• D)$250
• E)$75

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Definitions:

Kenneth Lay

Former CEO of Enron Corporation, involved in the company's infamous accounting fraud scandal that led to its collapse.

Corporate Corruption

Unethical or illegal activities conducted by individuals within or on behalf of a corporation, often to achieve personal or organizational gain.

Securities Violations

Illegal activities or misconduct related to the trading, selling, or managing of financial instruments like stocks and bonds.

White-Collar Deviance

Ethically questionable practices committed by people in professional roles or business environments.