A Person Buys a Bond with a Face Value of $10,000

question 56

Multiple Choice

A person buys a bond with a face value of $10,000 for $9,325.Each year until the maturity date the bond buyer receives $750 from the issuer of the bond.The yield on the bond is

• A) 8.04 percent.
• B) 7.5 percent.
• C) 10.0 percent.
• D) 6.75 percent.
• E) There is not enough information to answer the question.

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Definitions:

Enclosure

The historical process in England of consolidating (enclosing) small landholdings into larger farms since the 13th century, which led to significant social and economic changes, primarily displacing peasant farmers.

Common Lands

Areas of land open for communal use, typically for grazing livestock, collecting firewood, or other resources, managed by local communities.

Landowners

Individuals or entities that possess legal ownership of land or property, often exercising significant social, economic, or political power.

Trading Centers

Locations known for being hubs of commercial exchange, where goods, services, and currencies are traded extensively.