BUSN 380 study Great Stories/busn380study.com BUSN 380 study Great Stories/busn380study.com | Page 83

it does not have to be repaid.
Question 14. Question : (TCO 5) Assume that you purchased a $1,000
Exxon bond that pays 8.5% interest. What is the amount of interest
you would receive every 6 months?
$42.50
$8.50
$85
$4.25
$1,000
Question 15. Question : (TCO 5) What is the approximate market
value for a $1,000 corporate bond that pays 7% interest when
comparable bonds are paying 8% interest?
$800
$875
$70
$1,142
$1,000