Rick Bought a Bond When It Was Issued by Macroflex

question 57

Multiple Choice

Rick bought a bond when it was issued by Macroflex Corporation 14 years ago. The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six months; the next interest payment is scheduled for six months from today. If the yield on similar risk investments is 14 percent, the current market value (price) of the bond is: (Round the answer to two decimal places.)

• A) $841.15.
• B) $1,238.28.
• C) $904.67.
• D) $757.26.
• E) $844.45.

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Definitions:

David Riesman

A sociologist known for his work on the Sociology of knowledge, personality, and his book "The Lonely Crowd," which analyzes American character.

Conformists

Individuals or groups who adhere to accepted standards, norms, or practices of a society or organization, often to fit in or gain approval.

Moral Commitment

An ethical obligation or dedication to carry out actions that are considered right or beneficial to society.