Suppose the Price of a Tie Rises from $45 to $55.Using

question 259

Multiple Choice

Suppose the price of a tie rises from $45 to $55.Using the midpoint method,what is the percentage change in price?

• A) 10 percent
• B) -10 percent
• C) 20 percent
• D) -20 percent
• E) 100 percent

---

Definitions:

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to invest their money.

Zero-Coupon Bond

A debt security that is issued at a discount and repaid at face value but does not pay interest during its life.

Investment

The allocation of resources (such as time, money, or effort) in the expectation of generating an income or profit.

Face Value

The nominal value of a security stated by the issuer, typically found on bonds and stock certificates.