Assume That You Are Considering the Purchase of a R1,000

question 70

Multiple Choice

Assume that you are considering the purchase of a R1,000 par value bond that pays interest of R70 each six months and has 10 years to go before it matures.If you buy this bond, you expect to hold it for 5 years and then to sell it in the market.You (and other investors) currently require a simple annual rate of 16 percent, but you expect the market to require a rate of only 12 percent when you sell the bond due to a general decline in interest rates.How much should you be willing to pay for this bond?

• A) R842.00
• B) R1,115.81
• C) R1,359.26
• D) R966.99
• E) R731.85

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Definitions:

Symbolic Interactionism

A sociological theory focusing on the importance of human interaction, symbols, and meanings in the construction of social reality.

Feminism

A movement and ideology that advocates for equal rights for women and challenges gender inequality and societal norms.

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Relates to a movement in philosophy and sociology that critiques and goes beyond the frameworks of structuralism, emphasizing ambiguity, subjectivity, and the complexity of meanings.

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Scholars within a sociological perspective that emphasizes the role and integration of social institutions in maintaining societal stability and order.