Your Firm Has a $295,000 Bond Issue Outstanding

question 56

Multiple Choice

Your firm has a $295,000 bond issue outstanding.These bonds have a 6.35 percent coupon,pay interest semiannually,and have a current market price equal to 101 percent of face value.What is the amount of the annual interest tax shield given a tax rate of 35 percent?

• A)$6,125.50
• B)$6,556.38
• C)$12,176.13
• D)$6,621.94
• E)$12,297.89

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Definitions:

Polygyny

A mating system in which one male mates with multiple females, often found in animal societies.

Intersexual Selection

A form of natural selection in which individuals of one sex (usually females) choose mates from the opposite sex based on certain desirable traits, affecting the fitness of individuals.

Intrasexual Selection

The process by which individuals of the same sex actively compete for mates. Typically numerous males compete for a limited number of receptive females.

Pair Bonds

The strong affinity that develops in some species between a male and female that mate and produce offspring.