Solve the Problem $3 \%$ When the Price Is $\$ 150$ What Price Is Necessary for a Yield Of Inversely

question 67

Multiple Choice

Solve the problem.
-The yield on a bond varies inversely as the price. The yield on a particular bond is $3 \%$ when the price is $\$ 150$ . What price is necessary for a yield of $4.5 \%$ ? Round to the nearest cent, if necessary.

• A) \(\$ 9.00\)
• B) \(\$ 111.11\)
• C) \(\$ 100.00\)
• D) \$225.00

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Definitions:

Making Payments

The act of transferring money or its equivalent to another party as fulfillment of an obligation, such as repaying a loan or settling a bill.

Account Orders

Instructions to buy or sell securities or commodities that are given to a brokerage firm for execution.

Bank

A financial institution licensed to receive deposits, offer loans, and provide other financial services such as currency exchange and wealth management.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated person.