A Corporate Bond Makes Payments of $9

question 64

Multiple Choice

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

• A) a 10-year bond with a face value of $2,000 and a coupon rate of 4.8% with monthly payments
• B) a 10-year bond with a face value of $2,000 and a coupon rate of 5.8% with monthly payments
• C) a 10-year bond with a face value of $2,009.67 and a coupon rate of 4.8% with monthly payments
• D) a 10-year bond with a face value of $2,009.67 and a coupon rate of 5.8% with monthly payments

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Definitions:

Gross Margin Ratio

A fiscal gauge that assesses the amount of profit remaining from sales once the expenses for producing the goods have been subtracted.

Net Sales

Total revenue from sales minus returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

Direct expenditures linked to the manufacture of a company's products for sale, covering both materials and labor.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating the company's financial health over a specified period.