Interest Payments Determine the Interest Payment for the Following Three

question 71

Multiple Choice

Interest Payments Determine the interest payment for the following three bonds: 4 percent coupon corporate bond (paid semi-annually) ,4.75 percent coupon Treasury note,and a corporate zero coupon bond maturing in 15 years.(Assume a $1,000 par value.)

• A)$4.00, $4.75, $0, respectively
• B)$20.00, $23.75, $0, respectively
• C)$20.00, $23.75, $150, respectively
• D)$40.00, $47.50, $0, respectively

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Definitions:

Auction Without Reserve

An auction at which the auctioneer cannot withdraw goods unless no bid is made within a reasonable time.

Auctioneer

A person who conducts sales at auctions by accepting bids and declaring goods sold.

Highest Bid

The highest price offered by a bidder at an auction or in a competitive bidding process.

Firm Offer

A rule that no consideration is necessary when a merchant agrees in writing to hold an offer open for the sale of goods.