2,500 Bonds with a Term of Five Years, and a Coupon

question 4

Multiple Choice

2,500 bonds with a term of five years, and a coupon rate of 7%, compounded annually, with payments once a year, and a face value of $1000, were issued November 1. What is the total amount that the company will have paid out at the bonds maturity?

• A) $5,032,125
• B) $3,375,000
• C) $1,623,866
• D) $3,587,675
• E) $1,232,125

---

Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, reflecting the cost per unit.

Search Cost

The time, effort, and financial expense incurred by consumers or firms in looking for information or resources, goods, and services.

Advertising

The activity or profession of producing advertisements for commercial products or services.