The Following Information for a Bond Having No Expiration Date

question 49

Multiple Choice

The following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent.Refer to the above information.If the price of this bond falls by $200, the interest rate in effect will:

• A)rise by 2.5 percentage points.
• B)rise by 5 percentage points.
• C)fall by 2.5 percentage points.
• D)fall by 5 percentage points.

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Definitions:

Crepitus

A crackling or popping sound or sensation experienced under the skin and joints or in the lungs, often indicating the presence of air in abnormal places or friction between bone and cartilage.

Tactile Fremitus

A clinical examination method involving the vibration of the chest wall that is palpable on physical examination, often indicating the presence of lung disease or consolidation.

Chest Tube

A medical device inserted into the pleural space of the chest to remove air, fluid, or pus, commonly used in cases of pneumothorax or pleural effusion.

Palpable Thyroid Gland

A condition in which the thyroid gland can be felt upon physical examination, possibly indicating an abnormality.