A $100,000 5-Year 6% Bond Is Issued on January 1

question 86

Multiple Choice

A $100,000 5-year 6% bond is issued on January 1, 2020. The bond pays interest annually. The market rate is 8%. What is the selling price of the bonds, rounded to nearest dollar?

• A)$7,986
• B)$92,014
• C)$100,000
• D)$108,425

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Definitions:

Collectivist

A cultural orientation that values the group over the individual, emphasizing interconnectedness, cooperation, and social harmony.

Egalitarian

Reflecting a belief in or based on the principle that all people are equal and deserve equal rights and opportunities.

External Traits

Observable physical characteristics of an organism, such as hair color, eye color, or height, that are influenced by genetic and environmental factors.

Common Fears

Fears that are widely shared among people, such as fear of heights, spiders, or the dark, often rooted in survival instincts.