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

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Definitions:

Succession

The process by which the structure of a biological community evolves over time, involving species replacements and shifts in ecosystem composition.

Character Displacement

Character displacement is an evolutionary phenomenon where species that compete for the same resources develop distinct traits or behaviors, reducing overlap in their ecological niches.

Competitive Exclusion

A principle stating that two species competing for the same limited resources cannot coexist at constant population values, if other ecological factors remain constant.

Edge Effect

A phenomenon in ecology where increased diversity and different species are found at the boundary between two different habitats.