Suppose Matt's New Cars Issues a Discount Bond with a Face

question 30

Multiple Choice

Suppose Matt's New Cars issues a discount bond with a face value of $10,000 payable in one year with an interest rate of 4%.How much will they receive for the bond?

• A) $9,600
• B) $9,615
• C) $10,000
• D) $10,400

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Definitions:

Peak-period Capacity

The maximum output level that a company can sustain during the busiest period without increasing long-term fixed costs.

Machining Department

A specialized sector within a manufacturing facility where metal is cut, shaped, and finished using machine tools.

Direct Labor-hours

A measure of the total hours worked by employees who are directly involved in the production of goods or services.

Variable Maintenance Costs

Costs that vary in direct proportion to the usage of machinery or equipment, often related to repairs and upkeep.