Exhibit 18.2 Use the Information Below for the Following Problem(S)

question 1

Multiple Choice

Exhibit 18.2
Use the Information Below for the Following Problem(S)
Talmart Corporation bonds have a $1,000 face value and will mature in 4 years. The bonds have a 7% coupon rate. Interest is paid annually and the required rate of return is 6 percent for these bonds.
-Refer to Exhibit 18.2.What is the price of the Talmart corporate bonds?

• A) $965.63
• B) $966.13
• C) $1,034.65
• D) $1,135.10
• E) $1,051.97

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Definitions:

Res Ipsa Loquitur

A legal doctrine that infers negligence from the very nature of an accident or injury, in the absence of direct evidence of the defendant's fault.

Defendant

An individual, corporation, or entity being sued or accused in a court of law.

Negligence Action

A lawsuit alleging that a party's failure to act with reasonable care resulted in damage or injury to another.

Charge Of Negligence

An accusation made against an individual or entity for failing to act with the care that a reasonably prudent person would have in the same circumstances.