A 7 Percent Coupon Bond Has a Face Value of $1,000

question 85

Multiple Choice

A 7 percent coupon bond has a face value of $1,000 and pays interest annually.The current yield is 6.8 percent.What is the current price of this bond?

• A) $971.43
• B) $978.41
• C) $1,068.00
• D) $1,029.41
• E) $1,104.00

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Definitions:

Management Rights

These are the legal authorities and powers that the management of an organization holds to operate and make decisions for the business.

Base Rent

The minimum amount of rent due under a lease agreement, not including costs such as utilities, maintenance, and other operating expenses.

Winding Up Stage

The process of concluding the affairs of a business or partnership, leading to its dissolution.

Dissolution

The formal disbanding of a partnership, corporation, or other business entity. For instance, partnerships can be dissolved by acts of the partners, by operation of law, or by judicial decree.