Your Company Issues a 5-Year Bond with a Face Value

question 205

Multiple Choice

Your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 7%.The market interest rate is 5%.The issue price of the bond is calculated as the:

• A)present value of $10,000 to be received in 5 years plus the present value of $700 per year for 5 years.
• B)face value of the bonds,$10,000.
• C)amount investors would have to pay to earn 7% interest.
• D)amount investors would have to pay to earn an average of the stated interest rate and the market interest rate.

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Definitions:

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Chemical modifications to DNA and histone proteins that regulate gene activity without altering the DNA sequence, affecting how cells read genes.

Behavior Geneticists

Scientists who study the role of genetic and environmental influences on behavior.

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The biological capability of individuals or species to produce offspring, involving various physiological and genetic factors.

DNA

DNA, the molecule that holds the genetic guidelines necessary for the development, growth, functioning, and reproduction of all documented living entities and numerous viruses.