Four Years After It Was First Issued at 6% Compounded

question 32

Multiple Choice

Four years after it was first issued at 6% compounded semi-annually, a 25-year, $10,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 4.8% compounded semi-annually. What was the selling price at that time?

• A) $2,281
• B) $2,667
• C) $2,890
• D) $3,693
• E) $3,736

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Definitions:

Communicating

The process of conveying or exchanging information, ideas, or feelings through speech, writing, gestures, or other forms of verbal and non-verbal expression.

Fishery Product

A fishery product refers to any product or commodity derived from fish, including food items, fish oil, and other byproducts obtained through fishing or aquaculture.

Market Value

The current price at which an asset or service can be bought or sold in a open market.

Property Rights

Legal rights to use, control, and derive benefit from a resource, property, or asset.