If a Corporate Bond with Face Value of $1,000 Has

question 247

Multiple Choice

If a corporate bond with face value of $1,000 has an interest rate of seven percent paid once a year for a term of 10 years,what is the size of the coupon payment?

• A)$1,000
• B)$700
• C)$70
• D)$7

---

Definitions:

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, but also for some younger people with disabilities.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured, or reimburses the insured for expenses incurred from illness or injury.

Craft Kits

Prepackaged sets containing materials and instructions for creating handcrafted items.

Assembles

The act of gathering or putting together items from individual pieces.