A Bond Closed at 102

question 59

Multiple Choice

A bond closed at 102.25. The current yield is 10.4%. The annual interest is:

• A)$102.90
• B)$106.34
• C)$105.80
• D)$104.60
• E)None of these

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Priced At

The specified cost at which a good or service is offered for sale in the market.

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

Consumer Surplus

The gap between what consumers are prepared and capable of paying for a product or service and the actual amount they end up paying.