Which of the Following Amounts Is Closest to the Value

question 55

Multiple Choice

Which of the following amounts is closest to the value of a bond that pays $55 semiannually and has an effective semiannual interest rate of 5%? The face value is $1,000 and the bond matures in 3 years. There are exactly six months before the first interest payment.

• A) $1,014.
• B) $1,055.
• C) $888.
• D) $1,025.
• E) $1,000.

---

Definitions:

Average Happiness

A metric that attempts to measure the general level of satisfaction or well-being among a group of people or within a population.

Positive Emotions

Feelings that are generally beneficial for well-being, such as happiness, joy, contentment, and love.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., individuals) over short or long periods of time.

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.