Suppose That You Are Reviewing a Price Sheet for Bonds

question 50

Multiple Choice

Suppose that you are reviewing a price sheet for bonds and see the following prices (per $100 face value) reported. Without calculating the price of each bond, which bond seems to be reported incorrectly? $$\begin{array} { | c | c | c | c | } \hline \text { Bond } & \text { Price } & \text { Coupon Rate } & \text { Yield } \\\hline \mathrm { V } & 100 & 6 \% & 6 \% \\\hline \mathrm { W } & 110 & 8 \% & 6 \% \\\hline \mathrm { X } & 95 & 0 \% & 5 \% \\\hline \mathrm { Y } & 107 & 7 \% & 9 \% \\\hline \mathrm { Z } & 90 & 6 \% & 9 \% \\\hline\end{array}$$

• A)Bond V
• B)Bond X
• C)Bond Z
• D)Bond Y
• E)Bond W

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Definitions:

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences through study, experience, or teaching.

Drug Tolerance

Drug tolerance occurs when a person requires a higher dose of a drug to achieve the same effect due to repeated use.

Conditioning Models

Theoretical models used to explain how behavioral responses are learned and performed in relation to certain stimuli.

Larger Doses

Increased quantities of a substance, such as medication, taken at one time or over a defined period, often implying more than standard amounts.