What Is the Price of a Five-Year Bond with a $1,000

question 66

Multiple Choice

What is the price of a five-year bond with a $1,000 face value and a 5% annual coupon rate that currently yields 7%?

• A) $784
• B) $897
• C) $918
• D) $1,000
• E) $1,087

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Definitions:

Hydrochloric Acid

A strong, corrosive acid that is a component of gastric juice in the stomach, aiding in digestion and sterilizing ingested food.

Acidic

Having a pH less than 7, typically described for solutions that have a higher concentration of hydrogen ions.

Given Element

A chemical element specified or identified in a particular context or situation.

Protons Only

Describes an atomic composition focusing solely on protons, the positively charged particles in an atom's nucleus, ignoring other particles.