Cold Boxes Ltd

question 18

Multiple Choice

Cold Boxes Ltd.has 100 bonds outstanding (maturity value = $1,000) .The required rate of return on these bonds is currently 10 percent,and interest is paid semiannually.The bonds mature in 5 years,and their current market value is $768 per bond.What is the annual coupon interest rate?

• A) 8%
• B) 6%
• C) 4%
• D) 2%
• E) 0%

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Definitions:

Brain Evolved

The process by which the brain has developed and changed over millions of years through evolutionary pressures.

Years Ago

A non-specific term used to indicate a specific amount of time in the past from the current point.

Individual Variation

Differences in physical, behavioral, or physiological characteristics among members of the same species.

Charles Darwin

A 19th-century naturalist and biologist known for his theory of evolution by natural selection, fundamentally changing the understanding of the biological world.