A Little Known Fact Is That Both Robinson Crusoe and Friday

question 4

Multiple Choice

A little known fact is that both Robinson Crusoe and Friday wore eyeglasses. As it so happens, Robinson Crusoe was farsighted while Friday was nearsighted. Whose eyeglasses did they use
Whenever they wanted to start a fire by focusing the sun's rays?

• A) Robinson Crusoe's
• B) Friday's
• C) Both would work equally well.
• D) Both actually worked, but Friday's was a little bit better.
• E) Neither's worked, but fortunately they were in possession of matches.

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Definitions:

Implicit Interest

The interest amount represented in the difference between the present value and the future value of a payment or investment.

Nominal Face Value

The stated value of a financial instrument (e.g., bond) at issuance, unrelated to market value.

Zero Coupon Bond

A debt security that doesn't pay interest but is traded at a deep discount, offering a profit at maturity when the bond is redeemed for its full face value.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its worth at issuance or maturity.