A $43,000 Face Value Bond Will Mature in 75 Days

question 50

Multiple Choice

A $43,000 face value bond will mature in 75 days and has a bank discount yield of 2.35%. What is the current value of the bond?

• A)$42,342.89
• B)$42,583.23
• C)$42,673.13
• D)$42,712.32
• E)$42,789.48

---

Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting, not necessarily coinciding with the calendar year.

Government Expenditures

The financial spending by the government for its operations and public services.

Federal Level

Pertaining to the central government of a federation as opposed to state, provincial, or local levels.

Government Spending

Expenditures by the government for goods and services that government consumes for public purposes or to benefit its citizens.