When an Investor Purchases a $1,000 Par Value Bond That

question 79

Multiple Choice

When an investor purchases a $1,000 par value bond that was quoted at 97.162, the investor:

• A) receives 97.162% of the stated coupon payments.
• B) receives $971.62 upon the maturity date of the bond.
• C) pays 97.162% of face value for the bond.
• D)pays $10,971.62 for a $10,000 face value bond.

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Definitions:

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.

Inventory Management

The supervision of non-capitalized assets and stock items, aiming to ensure that items are available when needed without overstocking.