Suppose That Albert Can Buy a Bond for $1,000 That

question 114

Multiple Choice

Suppose that Albert can buy a bond for $1,000 that matures in two years and pays Albert $1,102.5 with certainty.He is indifferent between this bond and one that has some risk but on which the interest rate is 3% higher.How much,to the nearest penny,does the riskier bond pay in two years?

• A)$1,160.00
• B)$1,166.40
• C)$1,168.65
• D)$1,169.64

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Definitions:

Cause Of Action

A factual situation or legal basis that gives someone the right to seek a legal remedy or enforce a right against another in court.

Province

A province is a territorial unit within a country that often has its own local government, existing under the broader sovereignty of the state.

Plaintiff

A person or entity who initiates a lawsuit against another in a court of law.

Small Claims Court

A judiciary designed to resolve disputes involving relatively small financial amounts in a more informal, faster, and less expensive manner than traditional court systems.