Mary Wants to Purchase a 20-Year Bond That Has a Par

question 8

Multiple Choice

Mary wants to purchase a 20-year bond that has a par value of $1,000 and makes semiannual interest payments of $40. If her required yield to maturity is 10%, which of the following is closest to how much should Mary be willing to pay for the bond?

• A) $902
• B) $925
• C) $1000
• D) $828

---

Definitions:

Work Group

A group of employees working towards common goals and objectives, often within the same department or unit of an organization.

French And Raven's

This elaborates on the original French and Raven model by presenting a framework for understanding social influence in groups through the dynamics of power.

Power Bases

refer to the sources of power or authority an individual or group holds, such as expertise, coercion, or referent power.

Sense Of Belonging

A person's feeling of being accepted, valued, and connected to a group, community, or society.