11. MARRY has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the bond's price. a. $1,000.00 b. $1,213.19 c. $1,168.31 d. $956.42
11. MARRY has a $1,000 par value, 30-year bond outstanding that was issued 20 years ago at an annual coupon rate of 10%, paid semiannually. Market interest rates on similar bonds are 7%. Calculate the
a. $1,000.00
b. $1,213.19
c. $1,168.31
d. $956.42
12.
a. common stock
b. Treasury-bonds
c. Treasury-bills
d.
13. The discount rate used to value a bond is
a. fixed for the life of the bond.
b. the coupon interest rate.
c. determined by the issuing company.
d. the market rate of interest.
14.The
a. 1/(1+r)(t)
b. 1/(1+r)t
c. 1/(1+rt)
d. 1/(1+r-t)
15. The primary goal of a publicly owned corporation is to ________.
a. maximize earnings per share after taxes
b. maximize dividends per share
c. minimize shareholder risk
d. maximize shareholder wealth
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