Models and More Has a Bond Issue Outstanding with a Face

question 56

Multiple Choice

Models and More has a bond issue outstanding with a face value of $215,000.These bonds have a coupon rate of 5.65 percent,pay interest semiannually,and have a current market price quote of 1.01.The tax rate is 34 percent.What is the amount of the annual interest tax shield?

• A)$5,125.50
• B)$4,130.15
• C)$4,176.13
• D)$4,171.45
• E)$5,297.89

---

Definitions:

Psychoanalytic

A therapeutic approach and psychological theory focused on healing mental illnesses by exploring the dynamics between the conscious and unconscious aspects of the psyche.

Thematic Apperception Test

A projective psychological test that assesses an individual's underlying motives, concerns, and life perspectives through the stories they create about ambiguous pictures.

Projective Test

A type of personality test designed to let a person respond to ambiguous stimuli, potentially revealing hidden emotions and internal conflicts.

Aptitude Test

A standardized test designed to measure an individual's potential to succeed in a certain task or to learn certain skills.