The Price of a Bond with No Expiration Date Is

question 239

Multiple Choice

The price of a bond with no expiration date is originally $5,000 and it pays an annual interest payment of $500.If the price of the bond falls to $3,000, then the effective interest rate yield to a new buyer of the bond is:

• A)14.4 percent.
• B)16.6 percent.
• C)11.0 percent.
• D)9.0 percent.

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Definitions:

Known Threat

A specific danger that is identified and recognized by individuals or organizations.

Ticking Bomb

A hypothetical scenario often used in discussions of ethics and law enforcement, where a bomb is about to explode, and extreme measures, such as torture, are considered to prevent disaster.

Torture Warrants

A controversial proposal suggesting that legal authorities could issue permits allowing the use of torture in exceptional cases, especially for extracting information in terrorism-related circumstances.

Alan Dershowitz

A prominent American lawyer and legal scholar known for his work in constitutional law and American criminal law.