UOP, a Petroleum Processing Technology Firm, Issued a 10% Coupon

question 112

Multiple Choice

UOP, a petroleum processing technology firm, issued a 10% coupon, 20 year to maturity first mortgage bond five years ago.If the current market rate of debt for UOP is 8%, at what price should this bond sell, to the nearest dollar? Assume a par value of $1,000, and pays interest semi-annually.

• A)$1,170.
• B)$999
• C)$1,095
• D)$1,173

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Definitions:

1950s Writers

Authors and literary figures who were active during the 1950s, a time marked by post-war prosperity and cultural shifts, influencing various genres and styles.

Kennedy

A reference to the prominent American political family, particularly John F. Kennedy, the 35th President of the United States (1961-1963).

Latin America

A region in the Western Hemisphere comprising countries where Romance languages—primarily Spanish and Portuguese, alongside French—are predominantly spoken.

Alliance For Progress

An initiative launched by U.S. President John F. Kennedy in 1961 aimed at establishing economic cooperation between the U.S. and Latin America.