question archive Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000
Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000
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Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?
The bonds will become discount bonds if the market rate of interest declines.
The final payment will be in the amount of $1,060.
The bonds will initially sell for $1,030 each.
The bonds will sell at a premium if the market rate is 5.5 percent.
The bonds will pay 10 interest payments of $60 each.
Option 1
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Option 2
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