Fish Corp Purchases a $100,000 Face Value Bond Which Matures in in Two

question 137

Multiple Choice

Fish Corp. purchases a $100,000 face value bond which matures in two years. The coupon rate is 6% and the market rate is 7%. What is the premium or discount (rounded) ?

• A)$0
• B)$1,808
• C)$98,192
• D)$100,000

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Definitions:

Social Distance

The perceived or desired degree of remoteness between members of different social groups, which can affect communication and interaction.

Behavioral Expression

The outward manifestation of emotions, thoughts, or feelings through actions or behaviors.

Prejudice

A strong, unreasonable dislike or hatred of a group, based on a negative stereotype.

Stanford Prison Study

A psychological experiment conducted in 1971 that investigated the effects of perceived power, focusing on the struggle between prisoners and prison officers.