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:

Investing

Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Frame Shop

A business specializing in creating and selling frames, primarily for artwork and photographs.

Cash Account

A type of account that records all cash transactions, including cash receipts and payments, providing a clear view of a company’s liquid assets.

Transactions Posted

Transactions Posted refers to the process of recording financial transactions in the ledger of an accounting system, ensuring that the financial records are accurate and up-to-date.