Finance Assignment | Professional Writing
Use the following Information for the next five questions 15-19 Debbie Debs, Inc. (DDI) issued a 10 year. $100.000 face bond with a 10% interest rate. The bond pays the interest for 10 years and then pays the principal of $100.000 at the end of the 10th year. 15) If the current interest rates are 10% at the time of issue, on the date of issue, DDI will receive A. $ 100,000.00 B. $ 91,954.77 C. $ 73,734.81 D. $ 88,699.55 E.
None of the above Your Answer 16) If the current interest rates are 12% at the time of issue, on the date of issue, DDI will receive A. $ 104,986.81 B. $ 113,420.16 C. $ 88,699.55 D. $ 100,000.00 E. None of the above (17) If the current interest rates are 8% at the time of issue, on the date of issue, DDI will receive A. $ 104,986.81 B. $ 113,420.16 C. $ 77,399.11 D. $ 100,000.00 E. None of the above Your Answer 18) If the DDI bonds are sold to yield 12%, they will be said to be sold at: A a discount B. a premium C. par D. the coupon rate E. None of the above Your Answer 19) If the DDI bonds are issued to yield 12%, the face interest rate of 10% is also known as: A. The effective rate B. The coupon rate C. The premium rate D. The discount rate E. None of the above Your Answer
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