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:

Distribution

The process of making a product or service available for the consumer or business user who needs it, which can involve transportation, packaging, and delivery.

Ratio

A mathematical relationship that compares two numbers or quantities, indicating how many times one value contains or is contained by the other.

Frequencies

The number of times an event occurs within a specified period, often used in the context of waves or signals.

Categorical Statistics

A branch of statistics that deals with variables that can be categorized into distinct groups and analyzes the frequency and distribution of these categories.