A Person Buys a Bond with a Face Value of $10,000

question 13

Multiple Choice

A person buys a bond with a face value of $10,000 for $9,195. Each year until the maturity date the bond buyer receives a coupon payment of $450 from the issuer of the bond. The coupon rate on the bond is

• A)4.9 percent.
• B)4.5 percent.
• C)7.0 percent.
• D)6.75 percent.

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Definitions:

Turtle Exclusion Devices

Tools fitted to fishing nets that allow turtles to escape, thus reducing turtle bycatch in fishing operations.

Shrimp Trawlers

Fishing vessels designed for trawling the ocean floor to catch shrimp, often criticized for causing ecological damage.

Sea Turtles

Marine reptiles characterized by a bony or leathery shell and paddled limbs, belonging to the order Testudines.