A $50,000 Face Value STRIPS Is Quoted at 94

question 4

Multiple Choice

A $50,000 face value STRIPS is quoted at 94.300.What is the dollar price?

• A)$47,067.50
• B)$47,150.00
• C)$47,215.00
• D)$47,277.78
• E)$47,350.00

---

Definitions:

Direct Placement

A method of raising capital by selling securities directly to institutional investors like pension funds and mutual funds without public offering.

Long-term Debt

Refers to loans or borrowed capital that is repaid over a time frame longer than one year.

Prototype Financing

The process of securing funds to design, build, and test a prototype before mass production, critical in the development of new products or technologies.

Capital Provided

This term denotes funds given to a company or project by investors or lenders for the purpose of financing operations, growth, or investments.