Your Company Is Planning to Issue $1,000 Bonds with a Stated

question 246

Multiple Choice

Your company is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15,2022.If interest rates fall in the economy so that similar financial investments pay 5%,your company will:

• A)not be able to issue the bonds because no one will buy them.
• B)receive a higher issue price as buyers compete for the bonds.
• C)have to accept a lower issue price to attract buyers.
• D)have to reprint the bond certificates to change stated interest rate to 5%.

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Definitions:

Correctives

Measures or actions taken to rectify or correct an error, problem, or deviation from a standard.

Virtual Teams

Teams that work together through electronic means across various locations and often time zones, relying heavily on communication technologies.

Conventional Teams

Traditional groups of individuals assigned to perform tasks and achieve goals within an organizational structure, often characterized by fixed roles and hierarchy.

Information Technology

The use of computers and software to manage information.