A 10-Year Treasury Note as a Face Value of $1,000

question 127

Multiple Choice

A 10-year Treasury note as a face value of $1,000, price of $1,200, and a 7.5% coupon rate. Based on this information, we know the:

• A) present value is greater than its price.
• B) current yield is equal to 8.33%.
• C) coupon payment on this bond is equal to $75.
• D) coupon payment on this bond is equal to $90.

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Definitions:

Communism

A political and economic ideology advocating for the common ownership of the means of production and the absence of social classes, money, and the state.

Socialism

A political and economic ideology advocating for collective or governmental ownership and administration of the means of production and distribution of goods.

Elected Union Officials

Individuals chosen through an electoral process by union members to hold leadership positions and represent their interests.

Union Workers

Employees who are members of a union, an organization that represents their interests, particularly in negotiations with employers over wages, benefits, and working conditions.