Mind Explorers Issues Bonds with a Stated Interest Rate of 7

question 176

Multiple Choice

Mind Explorers issues bonds with a stated interest rate of 7%, face value of $200,000, and due in 10 years. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds.

• A) $163,200.
• B) $186,410.
• C) $214,878.
• D) $200,000.

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Definitions:

Corporate Culture

The values, beliefs, norms, history, and assumptions of an organization that shape behaviors and decisions of individual employees.

Full-Time Job

Employment in which an individual works a minimum number of hours defined as full-time by their employer, usually around 40 hours per week.

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Senior Manager

An executive level professional responsible for overseeing the operations and strategies of a department or an entire organization.