A 15-Year Bond Pays 11% on a Face Value of $1,000

question 67

Multiple Choice

A 15-year bond pays 11% on a face value of $1,000. If similar bonds are currently yielding 8%, what is the market value of the bond?

• A) over $1,000
• B) under $1,000
• C) over $1,200
• D) not enough information to tell

---

Definitions:

National Security State

refers to a government structure where the primary focus is on internal and external security, often at the expense of personal freedoms, with significant resources dedicated to defense and intelligence agencies.

War on Terror

A global campaign launched by the United States after the September 11, 2001 terrorist attacks, aimed at eradicating terrorism primarily through military means.

Containment Theory

A strategic foreign policy concept aimed at preventing the spread of communism during the Cold War.

Department of State

A federal executive department responsible for the international relations of the United States, managing diplomacy, negotiating treaties, and protecting U.S. interests abroad.