If the Interest Rate of a One-Year Bond Is 15

question 64

Multiple Choice

If the interest rate of a one-year bond is 15 percent and its dollar price is $3,250,the face value of the bond is

• A) $3,737.50.
• B) $2,826.09.
• C) $373.75.
• D) $282.61.
• E) $3,350.00.

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Definitions:

Retrieval Cues

Stimuli or signals that can trigger the memory of stored information, aiding in the recall process.

Source Confusion

A memory error where the origin of a memory is incorrectly attributed to the wrong time, place, or person.

Misinformation Effect

The result of a procedure in which, after an experience, people are exposed to questions or suggestions that misrepresent what happened. The term refers to people’s tendency to include the misinformation as part of their recall of the original experience.

Anterograde Amnesia

A condition affecting the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past.