Ocean Adventures Issues Bonds Due in 10 Years with a Stated

question 43

Multiple Choice

Ocean Adventures issues bonds due in 10 years with a stated interest rate of 6% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 5%. Using a financial calculator or Excel, what is the issue price of the bonds?

• A) $537,194.
• B) $464,469.
• C) $538,973.
• D) $500,000.

---

Definitions:

Personality Psychology

A branch of psychology focused on studying patterns of thoughts, feelings, and behaviors that make a person unique.

Learning

In behaviorism, a change in behavior as a result of experience.

Cognitive

Pertaining to basic mental processes of perception, memory, and thought.

Psychoanalytic

A psychological perspective that emphasizes the importance of unconscious processes and childhood experiences in influencing behavior and mental states.