Motown Cellular bonds mature in 2 1/2 years with a face value of $1,000. They pay a coupon rate of 11% distributed semi-annually. If the required rate of return on these bonds is 14% what is the bond's value?

A. $938.50
B. 840.31
C. 1112.56
D. $940.14

A. $938.50

Business

You might also like to view...

Environmental forces that shape the nature of an organization's actions include social, economic, technological, competitive, and ______ forces.

A. managerial B. relationship C. ethical D. regulatory

Business

Which of the following is true of the arbitration framework created by the New York Convention?

A) Signatory countries can require parties to an arbitration agreement to actually use arbitration. B) Signatory countries recognize and can enforce arbitration judgments. C) There are limited grounds for appealing arbitration decisions. D) The grounds that are recognized are different than the typical appeals that are permitted in a court of law. E) all of the above

Business