Use the Following Information to Answer the Question(s)below

question 19

Multiple Choice

Use the following information to answer the question(s) below.
-The price today of a three-year default-free security with a face value of $1000 and an annual coupon rate of 4% is closest to:

• A)$1002.78.
• B)$1003.31.
• C)$1028.50.
• D)$1028.61.

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Definitions:

Net Profit Margin Ratio

An indicator of profitability, calculated as net income divided by revenue.

Total Asset Turnover

A financial gauge assessing how well a company employs its assets to create sales turnover.

Cash Dividend

A payout in cash form from a corporation's profits to the individuals holding its shares.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the assets of a corporation, after deducting liabilities.