If a Bond Promises a Payment of $200 and the Interest

question 125

Multiple Choice

If a bond promises a payment of $200 and the interest rate is 3%, then the price of the bond is:

• A) $197.
• B) $206.2.
• C) $206.
• D) $194.2.

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Definitions:

Curved Ridges

Natural elevations or landforms that form a curved or arc-shaped pattern, typically the result of tectonic, erosional, or volcanic activities.

Glacier

A large, slow-moving mass of ice, formed by the accumulation and compaction of snow, which shapes the landscape as it flows.

Continental Collision

The process where two continental tectonic plates collide, resulting in mountain building and seismic activity.

Compound Interest

Interest calculated on both the initial principal and the accumulated interest from previous periods, leading to exponential growth over time.