Giant Electronics Is Issuing 20-Year Bonds That Will Pay Coupons

question 55

Multiple Choice

Giant Electronics is issuing 20-year bonds that will pay coupons semiannually. The coupon rate on this bond is 7.8 percent. If the market rate for such bonds is 7 percent, what will the bonds sell for today? (Do not round intermediate computations. Round your final answer to the nearest dollar.)

• A) $1,037
• B) $1,085
• C) $861
• D) $923

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Definitions:

Psychoanalyst

A professional who practices psychoanalysis, a therapeutic approach developed by Freud that explores unconscious conflicts and desires influencing behavior.

Symbolically

In a manner that uses symbols or symbolic actions to represent ideas, concepts, or other abstract entities.

Humanistic

Pertaining to a psychological approach that emphasizes individual freedom, personal growth, and the intrinsic value of humans.

Psychological Disorders

Mental disorders characterized by patterns of behavior, thought, or emotions that are abnormal or distressing to the individual, and which interfere with personal function.