A $100,000 5-Year 7% Bond Is Issued on January 1

question 44

Multiple Choice

A $100,000 5-year 7% 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)$96,007
• B)$103,993
• C)$104,100
• D)$95,890

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Definitions:

United States v. Windsor

A landmark Supreme Court case in 2013 that overturned Section 3 of the Defense of Marriage Act, advancing the rights of same-sex couples.

DOMA

The Defense of Marriage Act, legislation passed in 1996 in the United States that defined marriage as the union of one man and one woman for federal and inter-state recognition purposes.

Unconstitutional

Describes actions, laws, or policies that go against or are not in accordance with the constitution of a country.

Defense of Marriage Act

A U.S. federal law enacted in 1996 that defined marriage for federal purposes as the union between one man and one woman, and allowed states to refuse to recognize same-sex marriages granted under the laws of other states; it was partially overturned by the U.S. Supreme Court in 2013.