A Corporate Bond Makes Payments of $9

question 64

Multiple Choice

A corporate bond makes payments of $9.67 every month for ten years with a final payment of $2009.67. Which of the following best describes this bond?

• A) a 10-year bond with a face value of $2,000 and a coupon rate of 4.8% with monthly payments
• B) a 10-year bond with a face value of $2,000 and a coupon rate of 5.8% with monthly payments
• C) a 10-year bond with a face value of $2,009.67 and a coupon rate of 4.8% with monthly payments
• D) a 10-year bond with a face value of $2,009.67 and a coupon rate of 5.8% with monthly payments

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Definitions:

Flatter Span

A management structure with fewer levels of hierarchy and a broader span of control, allowing for more direct communication and less formal supervision.

Decentralization

The distribution of decision-making power and authority from a central figure or location to multiple smaller units or levels within an organizational hierarchy.

Specialized Jobs

Positions that focus on specific tasks or responsibilities, requiring particular skills or training.

Training Costs

The expenses associated with the process of educating or teaching employees new skills, knowledge, or behaviors related to their jobs.