Microsoft Issues a 2-Year Bond with a Face Value of $5,000.In

question 51

Multiple Choice

Microsoft issues a 2-year bond with a face value of $5,000.In addition to the principal paid at maturity,the bond has 2 annual coupon payments of $500 each,to be received at the end of the first and second year respectively.If the interest rate is 10 percent (0.10) per year,what is the value of the newly issued bond?

• A)$5,000.00
• B)$6,000.00
• C)$5,886.68
• D)$4,901.48
• E)$41.32

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Definitions:

Bony Projection

A protrusion or bump found on a bone that serves as an attachment point for muscles or ligaments.

Femur

The longest and strongest bone in the human body, located in the thigh, connecting the hip to the knee.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Bone

A rigid organ that constitutes part of the vertebrate skeleton, supporting the body, protecting organs, anchoring muscles, and storing minerals.