If the Annual Interest Rate Printed on the Face of a Bond

question 130

Multiple Choice

If the annual interest rate printed on the face of a bond is 25 percent,the face value of the bond is $1,000,and the current market price of the bond is $700,what is the current yield on the bond?

• A)25.5 percent.
• B)20.5 percent.
• C)35.7 percent.
• D)25.0 percent.

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Definitions:

Genetics

The scientific study of heredity and the variation of inherited characteristics.

Heredity

The passing of physical or mental characteristics genetically from one generation to another.

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.

Behavioral Genetics

A field of study that examines the role of genetics and environmental influences on behaviors.