What Is the Value of a Newly Issued 10-Year Bond

question 52

Multiple Choice

What is the value of a newly issued 10-year bond with face value of $10,000 and no coupon payments? Assume the interest rate is 7 percent (0.07) per year.

• A)$0
• B)$5,083.49
• C)$10,000
• D)$95,632.41
• E)$100,000.00

---

Definitions:

Right-Brained

Referring to the theory that people who are "right-brained" tend to be creative, intuitive, and holistic in their thinking, focusing on visuals and overall patterns.

Director Type

A categorization of leadership styles or characteristics exhibited by directors or managers in various fields.

Assertive

Characterized by confidence and self-assurance in expressing opinions and needs directly and respectfully, without being aggressive or passive.

Personality Traits

Enduring characteristics or qualities that define an individual's behavior, thoughts, and feelings.