Jane Thorpe has been offered a seven-year bond issued by Barone, Inc., at a price of 943.22. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 10 percent today. Should she buy the bonds at the offered price?
A) Yes, the bond is worth more at $1,015.
B) No, the bond is only worth $921.
C) Yes, the bond is worth more at $951.
D) No, the bond is only worth $912.
Answer: C) Yes, the bond is worth more at $951.
You might also like to view...
A good definition for a database is:
A) A collection of related data B) A piece of software for managing databases C) A text file with values delimited by commas D) A card catalogue
Your staff has worked hard to successfully complete a project for a large advertising client. Which of the following is the BEST way for you to express thanks to the staff?
a. Thank them at the staff meeting next month. b. Post a note on the company intranet. c. Ask your administrative assistant to post a note in the lunchroom. d. Send an email immediately to all staff.