If the Market Rate of Interest Is 10%, a $10,000

question 177

Multiple Choice

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount

• A) less than face value.
• B) equal to the face value.
• C) greater than face value.
• D) that cannot be determined.

---

Definitions:

Political Stability

A condition where a government is stable, capable of maintaining order, and there is an absence of political turmoil or frequent government change.

Internal Political Strife

Conflict among members within the same organization or group, often hindering progress or decision-making.

Global Marketplace

An international system for the exchange of goods, services, and capital across world markets, where businesses operate and compete on a worldwide scale.

Direct Investment

An investment made to acquire a lasting interest in or effective control over an enterprise in another country.