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:

Quick Victory

Achieving success or a desired outcome in a short period of time, often used in military or competitive contexts.

Military Manpower

The number of people available for military service within a country, including both active duty personnel and individuals eligible to be called up as reserves.

Naval Power

The strength and capability of a country's navy, affecting its ability to control sea trade routes and exercise military influence.

White American Population

A demographic group in the United States characterized by people of European, Middle Eastern, and North African descent as defined by the U.S. Census Bureau.