A Three-Year Bond Has 8

question 25

Multiple Choice

A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

• A) $857.96
• B) $949.24
• C) $1057.54
• D) $1000.00

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Definitions:

Reaction

A response or change in a system that occurs as a result of an external or internal stimulus.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.

Therapeutic Play

The use of play methods by healthcare professionals to help children understand, cope with, or communicate feelings about their health condition.

Express Feelings

The act of verbally or non-verbally conveying emotions, thoughts, or sentiments to others.