The Graph Shows the Number of Undecayed Atoms as a Function

question 52

Multiple Choice

The graph shows the number of undecayed atoms as a function of time. The half-life of this radioactive element is approximately

• A) 1 s.
• B) 2 s.
• C) 10 s.
• D) 4 s.
• E) 5 s.

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Definitions:

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.