A Bond with No Expiration Has an Original Price of $10,000

question 314

Multiple Choice

A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1,000.If the price of this bond increases by $2,500, the interest rate in effect will

• A)decrease by 1 percentage point.
• B)decrease by 2 percentage points.
• C)increase by 1 percentage point.
• D)increase by 2 percentage points.

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Definitions:

Sweating

The process of excreting fluid from the body's sweat glands, which is a crucial mechanism for temperature regulation and removal of toxins.

Intercalated Discs

Specialized connections between cardiac muscle cells that facilitate the coordinated contraction of the heart.

Cardiac Muscle

Specialized, striated muscle tissue found only in the heart, responsible for contracting and pumping blood throughout the body.

Peristalsis

A sequence of ripple-like muscular contractions that propel food along the digestive system.