Assume a Bond with a Face Value of $100 000 $\$ 37500$

question 39

Multiple Choice

Assume a bond with a face value of $100 000 pays semi-annual coupons of 6% p.a.in perpetuity.This bond has a discount rate of 8% p.a.What is the price of the bond?

• A) \( \$ 37500 \)
• B) \( \$ 75000 \)
• C) \( \$ 100000 \)
• D) \( \$ 150000 \)

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Definitions:

Complementary Skills

Refers to the combination of different abilities, skills, and expertise that team members bring together to achieve common goals effectively and efficiently.

Increased Productivity

An improvement in the efficiency of production, resulting in the ability to produce more output with the same amount of input.

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The approach taken by an organization to formulate and implement strategies to achieve its goals.

Top Management

Senior-most executives who are responsible for overseeing the strategic direction and operational effectiveness of an entire organization.