A bond has a par value of $100. It pays 10 percent interest. 1,000 are issued. How much capital is raised? A) $110,000 B) $100,000 C) $10,000 per year D) $90,000 Explain your answer.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter8: Analysis Of Risk And Return
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How much capital is raised?

A bond has a par value of $100. It pays 10 percent interest.
1,000 are issued. How much capital is raised?
A) $110,000
B) $100,000
C) $10,000 per year
D) $90,000
Explain your answer.
Transcribed Image Text:A bond has a par value of $100. It pays 10 percent interest. 1,000 are issued. How much capital is raised? A) $110,000 B) $100,000 C) $10,000 per year D) $90,000 Explain your answer.
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