What Is the Value of a Newly Issued 3-Year Bond

question 79

Multiple Choice

What is the value of a newly issued 3-year bond with a face value of $5,000 and no coupon payments? Assume the interest rate is 8 percent (0.08) per year.

• A)$4,629.63
• B)$5,000.00
• C)$3,969.16
• D)$3,756.57
• E)$4,545.45

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Definitions:

Control Group

The members of a test group who are allowed to continue without intervention so that they can be compared with the experimental group.

Independent Variable

A variable in scientific experiments that is manipulated or changed to observe its effects on a dependent variable.

Comparative Historical Research

A methodology in social science that compares different societies or historical periods to understand societal functions, transformations, and developments.

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A section in newspapers used for advertising jobs, sales, services, and other announcements, typically organized by categories.