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

question 33

Multiple Choice

A person buys a bond with a face value of $10,000 for $9,780. Each year until the maturity date the bond buyer receives $650 from the issuer of the bond. The yield on the bond is

• A)6.6 percent.
• B)6.5 percent.
• C)10.0 percent.
• D)6.75 percent.
• E)There is not enough information to answer the question.

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Definitions:

Group Norms

Informal guidelines and shared expectations that regulate the behavior of group members.

Behaviourist Theories

Psychological concepts focusing on observable behaviors, emphasizing the role of external stimuli in shaping behavior.

Positivist

An individual who adheres to positivism, a philosophical system that recognizes only that which can be scientifically verified or which is capable of logical or mathematical proof.

Scientific Method

A systematic approach to research involving the collection of data, formulation of a hypothesis, experimentation, and validation or refutation of the hypothesis.