Nathan Bought a Zero Coupon Bond in 2010 for $485

question 12

Multiple Choice

Nathan bought a zero coupon bond in 2010 for $485.19. In 2020 he redeemed it for $1,000. His internal rate of return on this investment was

• A) 206.1%.
• B) 20.6%.
• C) 7.5%.
• D) 0.00%.

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Definitions:

Situational Factors

External conditions or circumstances that can influence an individual's behavior, decisions, or performance.

Conforming

The act of aligning one's beliefs, attitudes, or behaviors with those of a group or societal norms, sometimes at the expense of personal preferences.

Asch's Experiment

Asch's Experiment was a psychological study conducted by Solomon Asch that demonstrated the power of conformity in groups, showing how peer pressure could influence an individual to make an incorrect judgement.

Influence Findings

The results or outcomes of research that indicate the effects or impacts of one factor on another within a study.