Cases Company Issues $800,000 of 7%, 10-Year Bonds on March

question 13

Multiple Choice

Cases Company issues $800,000 of 7%, 10-year bonds on March 31, 2013. The bond pays interest on March 31 and September 30. Which of the following statements is true?

• A)If the market rate of interest is 8%, the bonds will issue at a premium.
• B)If the market rate of interest is 8%, the bonds will issue at a discount.
• C)If the market rate of interest is 8%, the bonds will issue at par.
• D)If the market rate of interest is 8%, the bonds will issue above par.

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Definitions:

Succession Management

The process of identifying and developing potential future leaders or senior managers to fill key positions within an organization.

Employee Value Proposition

A unique set of benefits and rewards offered by an employer to attract, retain, and engage employees.

Brand Positioning

The strategy of creating a unique impression in the customer's mind so that they perceive your brand distinctively in comparison to competitors.

Succession Planning

A strategy for identifying and developing new leaders who can replace old leaders when they leave, retire or pass away.