Dynamo Corporation Has Semiannual Bonds Outstanding with 12 Years to Maturity

question 86

Multiple Choice

Dynamo Corporation has semiannual bonds outstanding with 12 years to maturity, and the bonds are currently priced at $1,080.29. If the bonds have a coupon rate of 8 percent, then what is the equivalent annual return (EAR) to the investor for purchasing the bonds at the described price? Round your final percentage answer to two decimal places.

• A) 3.5%
• B) 7.00%
• C) 7.12%
• D) 8.00%

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Definitions:

Presence

The state of being present and engaged in a particular environment or moment, often emphasizing the importance of mindfulness and attentiveness.

Stress

A condition of physical, mental, or emotional discomfort caused by challenging or unfavorable situations.

Decrease

To make or become less in quantity, size, intensity, or degree.

Stress

A psychological and physical response to demands that exceed an individual’s coping abilities.