The Present Value PV of a Bond with a Face

question 23

Multiple Choice

The present value PV of a bond with a face value 1000,a coupon rate 5% paid annually and 2 years to maturity at the interest rate per annum 6% is:

• A)981.67.
• B)937.17.
• C)934.50.
• D)1093.40.

---

Definitions:

Common-sense View

The intuitive or ordinary understanding of a situation or concept, without the need for scientific investigation.

Emotional Experience

The complex state of feeling resulting from the interaction between an individual's subjective cognitive interpretations and physiological responses.

Dangerous Situation

A scenario or environment where there is a significant risk of harm or injury.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses occur simultaneously and independently, rather than sequentially.