Rick Bought a Bond When It Was Issued by Macroflex

question 10

Multiple Choice

Rick bought a bond when it was issued by Macroflex Corporation 14 years ago.The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years.Interest is paid every six months; the next interest payment is scheduled for six months from today.If the yield on similar risk investments is 14 percent, what is the current market value (price) of the bond?

• A)$841.15
• B)$1,238.28
• C)$904.67
• D)$757.26
• E)$844.45

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Definitions:

Unilateral Contraction

Unilateral Contraction refers to the tensing of muscles on only one side of the body, often used in targeted exercises or movements.

Vertebral Column

The vertebral column, also known as the spine, is a sequence of vertebrae extending from the skull to the lower back, providing structural support and protecting the spinal cord.

Lateral Flexion

The bending of the body to the side, commonly referring to the spine but can apply to other limbs or joints.

Bulbospongiosus

A muscle of the perineum that covers the bulb of the penis in males and contributes to erection, ejaculation, and the sensation of orgasm, while in females, it aids in clitoral erection and the closing of the vagina.