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

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Feeling or showing certainty about one's abilities, qualities, or ideas.

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Conforming to, permitted by, or recognized by law or rules.

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An individual or organization that hires and pays people to perform work or provide services.

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Showing prejudice or bias, particularly in a way that treats an individual or group unfairly based on characteristics such as race, age, sex, or disability.