A $10,000 Bond Quoted at 106 Would Sell For

question 124

Multiple Choice

A $10,000 bond quoted at 106 would sell for:

• A) $10,106.
• B) $10,600.
• C) $106.
• D) $10,000.

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Definitions:

Eligible Dividends

Dividends designated by a corporation to be eligible for a reduced tax rate in the hands of individual Canadian shareholders.

Interest Income

Income earned from deposit accounts or investments through the receipt of interest payments.

Quebec

A province in eastern Canada known for its French heritage, culture, and language.

Marginal Tax Rates

The rate at which the next dollar of taxable income would be taxed, applied within a progressive income tax system.