If a Treasury Bond Can Be Purchased for $9,450 Today

question 45

Multiple Choice

If a treasury bond can be purchased for $9,450 today and the bond holder will receive $850 in interest and the face value at maturity is $10,000, what is the holding period return (round % to 1 decimal) ?

• A) 14.8%
• B) 5.8%
• C) 6.7%
• D) 12.6%

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Definitions:

Prejudice

Preconceived opinion or bias, often negative, towards people, groups, or subjects, based on stereotypes rather than individual merit.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Group Polarisation

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Extreme Decisions

Extreme decisions refer to choices made under conditions of high risk, uncertainty, or pressure, often with significant consequences.