If the Interest Rate of a One-Year Bond Is 10

question 75

Multiple Choice

If the interest rate of a one-year bond is 10 percent and its face value is $5,000,the dollar price of the bond is

• A) $5,000.00.
• B) $5,500.00.
• C) $4,545.45.
• D) $5,250.50.
• E) $454.00.

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Definitions:

Reassuring

Providing comfort or support to someone, often to alleviate doubts or fears.

Parroting

The act of mindlessly repeating what someone else has said without understanding or thought.

Humor

The quality of being amusing or entertaining, often used as a coping mechanism, social tool, or therapeutic method to ease tensions and foster relationships.

Consoling

Providing comfort and solace to someone who is distressed or sorrowful.