Problem:
1. Taylor Corp. sells $400,000 of bonds to private investors. The bonds are due in five years, have an 8% coupon rate, and interest is paid semiannually. The bonds were sold to yield 6%. What proceeds does Taylor receive from the investors?
2. Credit analysis concerns which of the following?
A) The price of a company's stock
B) The ability of a company to consistently pay dividends
C) The probability a company will make timely payments
D) An assessment of a company's credit-granting policies
Summary of problem:
These short answer questions is from Finance. The 1st question is about calculating the proceeds of selling bonds. The 2nd question is about the concerning activity of credit analysis.