DJMasson Inc

question 155

Multiple Choice

D.J.Masson Inc.recently issued noncallable bonds that mature in 10 years.They have a par value of $1,000 and an annual coupon of 5.5%.If the current market interest rate is 7.0%,at what price should the bonds sell?

• A)$829.21
• B)$850.47
• C)$872.28
• D)$894.65

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Definitions:

Economic Benefits

The advantages gained from financial activities, including profits, savings, or value creation, contributing to economic growth.

Erosion Prevention

Methods and practices aimed at stopping soil erosion to protect land and water resources, often involving vegetation or structural solutions.

Strong Property Rights

The legal protection and enforcement of individuals' rights to own, use, and transfer property, considered essential for economic development and innovation.

Low Birthrates

The situation in which the number of live births per 1,000 people in a population is lower than usual, indicating a decline in fertility.