The Price of a Bond with No Expiration Date Is

question 299

Multiple Choice

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond?

• A) 17.8 percent
• B) 16.7 percent
• C) 15 percent
• D) 11.2 percent

---

Definitions:

Shape Changes

Modifications in form or structure, often referring to physical transformations of objects or organisms.

Cognitive Development

The process by which individuals learn, understand, and become capable of using intellectual capacities such as reasoning, problem solving, and memory.

Conservation

The act of preserving, protecting, or restoring natural environments, cultural heritage, and other important assets from loss or damage.

Egocentrism

The cognitive inability to differentiate between one's own perspective and another person's perspective, often seen in early childhood development.