Seventeen Years After It Was First Issued at 11% Compounded

question 192

Multiple Choice

Seventeen years after it was first issued at 11% compounded semi-annually, a 30-year, $1,000 strip bond was sold on the bond market at a price that would provide the purchaser with a yield rate of 6.4% compounded semi-annually. What was the selling price at that time?

• A) $440.89
• B) $342.68
• C) $248.56
• D) $161.96
• E) $103.78

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Definitions:

Facial Features

The distinct parts of the face such as eyes, nose, mouth, which contribute to individual appearance.

Negative Reinforcement

A learning process in behavioral psychology where the removal or avoidance of an unpleasant stimulus strengthens the behavior that avoids or removes the stimulus.

Cognitive

Related to the process of knowing, including aspects such as awareness, perception, reasoning, and judgment.

Emotion

Feeling, or affect, that occurs when people are engaged in an interaction that is important to them, especially one that influences their well-being.