Approximate the Value Using a Calculator

question 77

Multiple Choice

Approximate the value using a calculator. Express answer rounded to three decimal places.
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• A)42.556
• B)43.711
• C)10.367
• D)36.462

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Definitions:

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the value at which it will be redeemed at maturity or the value on which dividends or interest are calculated.

Coupon Rate

A bond's annual yield rate, represented as a percentage of its par value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often expressed in years.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in reference to bonds.