A 3-Year Bond with 10% Coupon Rate and $1000 Face

question 20

Multiple Choice

A 3-year bond with 10% coupon rate and $1000 face value yields 8% APR. Assuming annual coupon payment, calculate the price of the bond.

• A) $857.96
• B) $951.96
• C) $1000.00
• D) $1051.54

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Definitions:

Colour Vision

The ability of the eye and brain to perceive differences in wavelengths of light, enabling humans and other animals to see a variety of colors.

Defective Receptors

Abnormal proteins on the surface of cells that impair the cell's ability to respond to stimuli.

Amplitude

In physics, amplitude refers to the maximum distance moved by a point or object from its equilibrium position in a periodic motion, such as in waves or vibrations.

Perceive

To become aware of, know, or identify by means of the senses.