Consider the Following Three Bond Quotes; a Treasury Note Quoted

question 105

Multiple Choice

Consider the following three bond quotes; a Treasury note quoted at 87.25, and a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?

• A) $872.50, $1,000, $1,000, respectively
• B) $1,000, $1,000, $1,000, respectively
• C) $872.50, $1,024.20, $5,072.50, respectively
• D) $1,000, $1,024.20, $1,001.45, respectively

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Definitions:

Transnational Strategy

A strategic approach used by multinational corporations that seeks to achieve global efficiency, local responsiveness, and worldwide learning, leveraging global integration and local adaptation.

Scale Economies

Economic efficiencies that arise due to the increased output or size of an operation, leading to a reduction in average costs.

World Car

A term used to describe a model of car designed to meet the needs and preferences of consumers in multiple countries or regions.

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to accommodate local preferences and legal requirements.