Exhibit 14-9 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 32

Multiple Choice

Exhibit 14-9
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
BioTech Industries has debentures outstanding (par value $1,000) convertible into the company's common stock at $30. The coupon rate is 11% payable semiannually and they mature in 10 years.
-Refer to Exhibit 14-9. Calculate the straight-bond value assuming that bonds of equivalent risk and maturity are yielding 14% per year compounded semiannually.

• A) $757.37
• B) $796.83
• C) $841.07
• D) $889.82
• E) $902.65

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Definitions:

Derived Demand

is the demand for a product or service that arises from the demand for another product or service, such as the demand for steel being driven by the demand for cars.

Capital Demand

The desire or need for capital goods, such as machinery and tools, that are used to produce other goods and services.

Product Demand

The desire and willingness of consumers to purchase a specific quantity of goods or services at various prices during a certain period.

Labor Demand Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that employers are willing to hire, typically downward sloping.