9-77 What Is the Price of the Bond If Market

question 12

Multiple Choice

9-77 What is the price of the bond if market interest rates are 5 percent?

• A)$100,952.38.
• B)$101,238.10.
• C)$100,963.71.
• D)$100,000.00.
• E)$101,108.27.

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Definitions:

Warranty Expense

The cost associated with the obligation of a company to repair or replace its product if it is found to be defective within a certain period.