Bond a and Bond B Both Have a Maturity Value

question 19

Multiple Choice

Bond A and Bond B both have a maturity value of $1,000 and pay annual interest of 9%.The market rate of interest is also 9%.Bond A matures in 4 years and Bond B matures in 5 years.Which of the following is correct?

• A)Bond A will sell for more than Bond B.
• B)Both bonds sell for the same amount, $1,000.
• C)Both bonds sell for more than $1,000.
• D)Bond B will sell for more than Bond A.
• E)There is not sufficient information to answer the question.

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Definitions:

James Fowler

A theologian and psychologist best known for his work on the stages of faith development.

Faith Development

A psychological theory that outlines how people's faith matures and evolves throughout their lives.

Middle Adulthood

A stage of life typically between the ages of 40 and 65, where individuals often experience stability in relationships, career, and personal identity.

Emotional Self-Regulation

The capability to adjust one’s emotions to a desired state and level of intensity.