Use the Information to Answer the Question(s)below

question 54

Multiple Choice

Use the information to answer the question(s) below.
-Shown above is information from FINRA regarding one of Caterpillar Financial Services' bonds.How much would the holder of such a bond earn each coupon payment for each $100 in face value if coupons are paid annually?

• A)$1.38
• B)$3.95
• C)$4.00
• D)$4.36
• E)$5.17

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Definitions:

Single-Step Income Statement

An income statement format that totals revenues, subtracts expenses to find the bottom line, simplifying the presentation of net income.

Cost of Goods Sold

Costs that are directly associated with the manufacture of products a company offers for sale, including the expenses for labor and materials.

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period.

General and Administrative Expenses

Overhead costs not directly tied to the production of goods or services, including salaries of executives, rent, utilities, and legal fees.