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financing is equity financing, and this is a popular choice because
a lender is always available to provide this type of financing.
it does not cost anything to sell in the primary market.
repayment doesn't have to be made for 10 years or more.
only interest must be paid for the first 5 years.
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