A Bond Pays 9% Yearly Interest in Semi-Annual Payments for 6

question 32

Multiple Choice

A bond pays 9% yearly interest in semi-annual payments for 6 years.The current yield on similar bonds is 12%.To determine the market value of this bond,you must:

• A) find the interest factors (IFs)for 12 periods at 12%.
• B) find the interest factors (IFs)for 6 periods at 9%.
• C) find the interest factors (IFs)for 6 periods at 6%.
• D) find the interest factors (IFs)for 12 periods at 6%.

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Definitions:

Semitendinosus

One of the three hamstring muscles located at the back of the thigh, important for bending the knee and extending the hip.

Semimembranosus

One of the three muscles in the posterior compartment of the thigh, playing a crucial role in extending the hip and bending the knee.

Transverse Abdominis

The deepest layer of the abdominal muscles that helps stabilize the core, pelvis, and lower back, and is key in maintaining internal abdominal pressure.

External Oblique

A muscle in the abdomen's outer layer that helps in rotating the trunk and pulling the chest downward.