You Have a Bond That You Can Redeem for R₁0

question 31

Multiple Choice

You have a bond that you can redeem for r₁0 000 one year from now.The interest rate is 10 per cent per year.How much is the bond worth today?

• A)R9 090.91
• B)R11 000.00
• C)R9 000.00
• D)R523.81

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Definitions:

Responsibility

An obligation or duty to perform or complete a task or role, usually with accountability for the outcome.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Organizational Subsystem

A division or unit within an organization that has its specific role and functions contributing to the overall objectives.

Boundary-Spanning

Activities and practices by individuals or units within an organization that interact with and adapt to external environments and stakeholders.