A $50,000 Strip Bond Was Discounted to $21,680

question 103

Multiple Choice

A $50,000 strip bond was discounted to $21,680. The market rate was 7.4% compounded semi-annually. How much time was left before the bond reached maturity?

• A) 11.5 years
• B) 21.9 years
• C) 11.7 years
• D) 5.04 years
• E) 23 years

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Definitions:

Organizational Leadership

The process of influencing and guiding individuals or groups within an organization to achieve goals and objectives through effective decision-making and strategy formulation.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from observation, experience, reflection, reasoning, or communication.

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The process of identifying a problem, finding alternatives for dealing with it, and then selecting and implementing a solution.

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