Last Year,Danielle Bought a Bond for $10,000 That Promises to Pay

question 88

Multiple Choice

Last year,Danielle bought a bond for $10,000 that promises to pay $350 a year.This year,a person who buys a bond for $10,000 receives $325 a year.If Danielle were to sell her (old) bond,its price would be approximately

• A) $9,286.
• B) $10,769.
• C) $11,456.
• D) $9,119.

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Definitions:

IFRS

International Financial Reporting Standards, which are international accounting standards for preparing and presenting financial statements.

U.S. GAAP

A framework of accounting standards, principles, and procedures that companies registered in the United States must follow to report their financial statements, ensuring accurate financial reporting and investor trust.

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.

Paid in Capital

Funds received by a company in exchange for its stock, representing the capital given by investors during common or preferred stock issuance.