Devine Divots Issued a Bond a Few Years Ago That

question 75

Multiple Choice

Devine Divots issued a bond a few years ago that has a face value equal to $1,000 and pays investors $30 interest every six months.The bond has eight years remaining until maturity.If you require a 7 percent rate of return to invest in this bond, what is the maximum price you should be willing to pay to purchase the bond?

• A)$761.15
• B)$939.53
• C)$940.29
• D)$965.63
• E)$1,062.81

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Definitions:

Mosaicism

A condition in which an individual has two or more genetically different sets of cells in their body.

Translocation

A cause of Down syndrome in which part of the 21st chromosome of the human cell breaks off and attaches to another. Individuals with Down syndrome due to translocation have all of the features found in trisomy 21.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by physical growth delays, characteristic facial features, and mild to moderate intellectual disability.

Non-social Environment

An environment lacking social interaction or influences, often used to study behaviors or responses without the effect of social factors.