Erica Invests $5,000 in Five ABC Corporation Bonds That Mature

question 253

Multiple Choice

Erica invests $5,000 in five ABC Corporation bonds that mature in ten years.Unexpectedly just the week after she invests,she has the opportunity to work abroad,which she has always wanted to do,but she needs cash.Which of the following most likely applies to Erica?

• A)She can immediately sell the bonds for $5000 plus interest for the week.
• B)She is out of luck.She must keep the bonds for the full ten years.
• C)She may immediately sell the bonds but it is unclear how much money they will sell for.
• D)She will be able to sell them immediately on the primary market.

---

Definitions:

Simplify

To make something less complex or complicated, making it easier to understand or solve.

Radical

Refers to the root of a number, with the most common being the square root, though it can refer to cube roots or higher.

Square Root

A number which produces a specified quantity when multiplied by itself.

Square Root

The figure that, upon being multiplied with itself, results in the starting number.