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

question 77

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 Macaulay duration of the Talmart corporate bonds?

• A) 3.43
• B) 3.64
• C) 3.76
• D) 3.85
• E) 4.11

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead, used for budgeting and measuring performance.

Hours

A unit of time equivalent to 60 minutes, often used to track time spent on activities or work performed.

Finished Goods Inventory

Inventory of finished goods available for sale.

Standard Costs

Predetermined costs used for product costing, budgeting, and measuring performance, usually reflecting ideal expenses under normal conditions.