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:

Cholesterol Intake

The amount of cholesterol consumed through the diet, an important factor in managing risks for heart disease.

Fat Intake

The amount of fat consumed in one's diet, important for nutritional balance and health.

Resting Energy Expenditure (REE)

The amount of energy, measured in calories, that a person expends while at rest, essential for understanding metabolic health and nutritional needs.

Basal Metabolic Rate (BMR)

Amount of energy used in a unit of time by a fasting, resting subject to maintain vital functions.