Add the Following Numbers

question 32

Multiple Choice

Add the following numbers.

• A) 4.6
• B) 8.6
• C) 9.6
• D) 8.7
• E) 8.4

---

Definitions:

Zero Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, offering profit at maturity when it is redeemed for its face value.

Face Value

The nominal value printed on a financial instrument like a bond or stock certificate, not necessarily its market value.

Interest Rate

The interest rate is the proportion, typically expressed as a percentage, at which interest is paid by borrowers for the use of money that they borrow from a lender.

Present Discounted Value

The immediate value of a forthcoming sum of money or cash flow streams, discounted at a specific rate of return.