When an Investor Purchases a $1,000 Par Value Bond That

question 79

Multiple Choice

When an investor purchases a $1,000 par value bond that was quoted at 97.162, the investor:

• A) receives 97.162% of the stated coupon payments.
• B) receives $971.62 upon the maturity date of the bond.
• C) pays 97.162% of face value for the bond.
• D)pays $10,971.62 for a $10,000 face value bond.

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Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and in a given period.

Macroeconomic Equilibrium

Occurs when aggregate demand equals aggregate supply in an economy, resulting in stable prices, full employment, and balanced economic growth.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a given price over a certain period of time.