Suppose an Exxon Corporation Bond Will Pay $4,500 Ten Years

question 140

Multiple Choice

Suppose an Exxon Corporation bond will pay $4,500 ten years from now.If the going interest rate on safe 10-year bonds is 4.25%,how much is the bond worth today?

• A)$2,819.52
• B)$2,967.92
• C)$3,116.31
• D)$3,272.13
• E)$3,435.74

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Definitions:

Supply Chain Profit

The total revenue generated from a product minus the costs incurred from raw materials to final delivery, across all participants in the supply chain.

Revenue Source

The origin or mechanism through which a business or organization generates income.

Profit Maximization

The process of increasing the difference between total revenue and total costs to achieve the highest possible profit levels.

Global Production

The manufacturing and assembly of goods and services spread across countries to take advantage of location-specific advantages.