When the Interest Rate Is 10 Percent, What Is the Price

question 2

Multiple Choice

When the interest rate is 10 percent, what is the price of a bond that matures in one year, has a $300 face value, and has a coupon of $20 per year?

• A)$93.24
• B)$266.11
• C)$272.72
• D)$290.90
• E)$282.64

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Definitions:

NMDA Receptor

A type of receptor involved in synaptic plasticity, memory formation, and is critical for excitatory neurotransmission in the brain.

Postsynaptic Membrane

The specialized area of a cell membrane on a neuron that receives and processes signals from another neuron at a synapse.

Glutamate

An amino acid that acts as a major excitatory neurotransmitter in the nervous system, playing a key role in brain development and synaptic plasticity.

Depolarized

A state in which the membrane potential of a neuron becomes less negative, making the neuron more likely to fire an action potential.