Four People Failed a Difficult Exam and Are Trying to Forget

question 116

Multiple Choice

Four people failed a difficult exam and are trying to forget about the experience. Which person will be MOST successful?

• A) Manny, who has been staying awake for the past three nights
• B) Jacob, who keeps thinking about how important this test was
• C) Joan, who has taken up meditation
• D) Bree, who enjoys listening to music, watching TV, and talking to her friends all at once

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Definitions:

Quoted

The stated price at which a security is offered for sale on a stock exchange or in the financial markets.

Zero-Coupon Bond

A bond that does not pay interest during its life and is sold at a discount from its face value.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, indicating its legal worth at issuance.

Implicit Interest

The interest rate that is not explicitly stated but inferred from the difference between the purchase price and the total payments to be made in a financing transaction.