The App Store Needs to Raise $2

question 81

Multiple Choice

The App Store needs to raise $2.2 million for an expansion project.The firm wants to raise this money by selling zero coupon bonds with a par value of $1,000 that mature in 20 years.The market yield on similar bonds is 8.8 percent.How many bonds must The App Store sell to raise the money it needs? (Assume semiannual compounding.)

• A)2,200 bonds
• B)3,450 bonds
• C)11,508 bonds
• D)11,797 bonds
• E)12,315 bonds

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Definitions:

Diastole

The phase of the heart's cycle during which the heart muscles relax and the chambers fill with blood.

Fibrillation

An uncoordinated twitching of the muscle fibers, particularly in the heart, leading to inefficient pumping action.

Ischemia

A condition characterized by insufficient blood flow to a part of the body, causing a shortage of oxygen that is needed for cellular metabolism.

Depolarization

A reduction in the difference in electrical charge across a cell's plasma membrane, typically leading to nerve impulse transmission or muscle contraction.